1.The age of the investor is an important factor as older investors may have a lower risk appetite than younger ones.

2.The more the accumulated capital an investor has, the higher will be the risk appetite.

3.The higher the income stability, the higher is the risk-taking ability.

4.Risk Appetite of an investor decreases if there is an increase in the number of dependents as expenses also increase.

5.The investor’s attitude and willingness towards risk.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.