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Abstract
This paper examines the relationship between demographic factors such as gender, age, marital status, education level and income with the level of risk tolerance. We use a survey questionnaire from 147 respondents of working adults in Kuala Lumpur. The results show that the respondents prefer to keep/ invest in liquid assets such as savings account, cash in hand and EPF. This indicates that a majority of them are risk averse with a small percentage of respondents who invest in risky assets like gold, mutual funds/unit trust, real estate. Male respondents owned more risky assets, signifying that they are more risk tolerant than the female respondents. The study also shows that individuals with higher education levels specifically tertiary education have greater risk tolerance. Results from the regression analysis, only age and marital status are found to be statistically significant to risk tolerance of working adults. This indicates that older respondents tend to be more risk adverse compared to the younger while the married respondents seem to be risk taker than the single one.
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