Stock market investments have become the most friendly and convenient form of investment for every investor's age group. At present, almost everyone is investing in the stock markets. However, what type of security they invest in and what affects their investment decision depends upon several factors, which may include factors like age, gender, education, occupation, investment objective, risk appetite, income, etc. Age is one of the prominent factors influencing investment preferences not only directly but also indirectly. It is generally seen that the younger generation prefers investing in direct equity in the stock market, which is considered a risky investment, whereas people of old age are likely to invest in stable and risk-free securities like debt securities and mutual funds. It is also seen that young investors prefer investing for a short period because of their impatient behavior, but as they grow old, they start holding their investments for the medium to long term. This study attempts to determine the effect of age on the risk preference and investment period choice of retail stock market participants. 256 retail investors were selected for the study from Kanpur city, and data was collected using a structured questionnaire. Chi-square test, conducted under the study to determine the impact of age on the risk preference and investment period preference of retail investors. In addition to this, the value of Phi, Cramer's V statistic, and the contingency coefficient were all computed so that the "degree of association" between the variables could be determined. The findings of this study reveal that investors' age affects their risk preferences and the period for which they prefer investing. However, between age and risk preference, there was a moderate degree of association found, but in the case of age and investment period preference, the degree of association was weak.
Stock market; Retail investors; Age; Risk preference; Investment period
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