Financial risk tolerance among households in Kuching.

The main purpose of this study is to examine the determinants of the risk tolerance on financial instruments particularly among individual’s households in Kuching, Sarawak. The research questions will address the level of influence with regard to gender, age,race occupation, income and education on the financial risk tolerance among individual’s household. This study was designed to determine whether the variables gender, age, race, material status, occupation, income,race and education could be used individually or in combination to both differentiate among levels of investor risk tolerance and classify individuals into risk tolerance categories. Discriminates analysis results indicated that financial risk tolerance was associated with being male, female, younger, older, married, single, divorced, government employees, private sector employees, professionally employed with higher incomes, more education, more financial knowledge, and increased economic expectation. Findings suggest that the success of financial achievement can be employed, at least in part by combination of someone’s personality characteristic and socioeconomic background.