Abstract

The risk taking attitude of the investors purely depends on the amount or rate of return expected by the investors. If any investor who is aspiring for higher return out the investment made obviously the investor is having high risk taking attitude. Higher return expectation leads to higher the risk taken and lower return expectation leads to lower the risk taken. An investor can either be a risk taker (aggressive or moderate) or risk averter (conservative). The Indian financial market comprises of risky financial products as well as the risk free financial products. It is choice of the investor to prefer either risky or risk free financial products. Now-a-days a shift in the investment preference of investors from risk free financial products to risk associated financial products can be evidenced in the emerging economies like India.  An attempt has been made in this study to discriminate the investors in to risk takers and risk averters. A further attempt has also been made to rank the investors with respect to various factors influencing the investors in prioritizing their objective.

Key words: Risk takers, Risk averters, Discriminant analysis, Garett’s Ranking