Project phase 1

Title : Risk perception and portfolio management of equity investors and risk
management in stock broking firms
Statistical summary of data collected :
No. Of papers : 50
Timeline of review : 2013 – 2019
Number of gaps : 2
Review of literature suggests that a number of studies have been
carried out to study the
Equity investor’s risk perception and portfolio management
throughout the world with skewed
focus on identifying key factors influencing individual investor’s
decision to make portfolio
choices. A number of authors have recognized that certain
demographic and socio-economic
factors influence the perception and decision pattern of investors.
Moreover, most of these
studies have been mainly undertaken to understand the link
between risk perception and its
impact on investors’ behavior. However, very few of them attempt
to find this link in the context
of portfolio management.
Historically, there has been a great deal of confusion in the
literature regarding the
relationship between the factors influencing the individual
investor’s decision. To my knowledge
no prior studies have examined about the portfolio models in
foreign countries which can be
applied in India. Previous studies were limited to a particular set of
respondents, either experts or
non-experts.
Additional studies to understand more completely the key tenets of
risk perception and
portfolio management of equity investors are required. Therefore
the goals of this study are, to
 find the relationship between the factors influencing the risk
perception of a prudent investor and
then to clarify the dominant factor. This paper addresses applicable
foreign portfolio models,
with the acceptance of Indian investors, so far lacking in the
Behavioral finance. A further
question is whether experts and non-experts have different
perception and understanding about
risk and portfolio management.
Research design :
Approach : Descriptive approach
Sample size : 100 equity investors in coimbatore
 Equity investors who had been trading in Coimbatore
stock exchange for atleast one year(Experts).
 Equity investors who had been trading in Coimbatore
stock exchange for less than one year (Non-experts).
Observation method :
Primary and Secondary data
Statistical methods :
Regression methods, Sentiment analysis