Vol: 12, Issue: 4 2022

Page: 057-069

Investor Risk Tolerance and Portfolio Management: A Literature Review

Dr. H.K. Manjula, Dr. Suresh Nadagouda, Dr. Shashidhara H S

http://doi.org/10.37648/ijtbm.v12i04.004

Risk tolerance is the level of risk that an Investor believes they are willing to accept. Risk Tolerance must be measured simply because it is an aspect of utility for any investment decision and maximizing the expected utility is considered to be the ultimate goal in any financial activity. The research paper is completely based on secondary sources of data, which has been prepared by reviewing various research articles from journals, magazine and books. Further, attempts are been made to explore the reviews on Investor Risk Tolerance and Portfolio Management in various sectors/industries. The man aim of this study is to examine the various researches carried out on Investor Risk Tolerance and Portfolio Management, to identify the various elements determining Investor Risk Tolerance, to provide suggestions for optimal management of Portfolios. The present research paper tries to give few suggestions for policy makers and like the policy-makers needs to conduct researches on an ongoing basis and investigate whether there are any changes in the biases that are perceived by Indian investors that could affect many stakeholders severely.