Risk Perception & Portfolio Management of Equity Investors -A Critical Study
| 2024 | |
| Volume - VII, Issue - I |
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| Risk Perception & Portfolio Management of Equity Investors -A Critical Study | |
| Mr. Ashis Kumar Mahapatra, Ms. Aiswarya Swain & Dr. Bishnu Prasad Kar | |
| Risk Perception & Portfolio Management | |
| Equity investors are individuals who allocate capital to a company in exchange for a share of ownership, thereby participating in the company's potential growth and profits. Understanding risk perception and its influence on investment behavior is a central focus of behavioral finance research. Equity investors typically encounter two primary types of risks: systematic risk, which affects the entire market, and unsystematic risk, which is specific to a particular company or industry. To effectively manage these risks, equity investors often rely on portfolio management. Portfolio management is the sophisticated practice of selecting the optimal investment strategy to achieve the dual objectives of minimizing risk and maximizing returns. Under the expert guidance of a portfolio manager, investors receive tailored advice on the best investment mix based on their income, budget, age, and risk tolerance. The portfolio manager‗s role is to craft a diversified portfolio that aligns with the investor's financial goals while mitigating potential risks. The primary aim of this study is to explore the risk perceptions of individual equity investors and examine how these perceptions influence their portfolio construction and management strategies. Additionally, the study delves into the diverse profiles of individual equity investors, analyzing variations in investment behavior based on factors such as income, occupation, gender, and age. Through this lens, the research seeks to provide a comprehensive understanding of how different demographic groups navigate the complexities of equity investment and risk management. | |
| Risk Perception & Portfolio Management of Equity Investors -A Critical Study | |
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