Risk tolerance towards investment decision of young urban professionals in cities of Cavite / by Ma Joana Pauline R. Joya, Mayvilyn O. Navida and Audrey Mae V. Vidallon.

Thesis (Bachelor of Science in Business Management Major in Financial Management) Cavite State University.

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

JOYA, MA JOANA PAULINE R., NAVIDA, MAYVILYN 0., VIDALLON V. Risk Tolerance Towards Investment Decision of Young Urban Professional in Cities of Cavite. Undergraduate Thesis, Bachelor of Science in Business Management, major in Financial Management. Cavite State University, Indang, Cavite. June 2018. Adviser: Ms. Sherrie Rhose M. Matel.
The study was conducted to determine and analyze the risk tolerance towards investment decision of young urban professionals in cities of Cavite. Specifically, this was carried out to determine the socio-demographic characteristics of the participants; determine the risk tolerance and investment decision of young urban professionals; determine if there is significant difference in the level of risk tolerance when grouped according to socio-demographic characteristics and investment decision of young urban professionals in cities of Cavite. The study was conducted from January to May 2018 in all the cities of Cavite, specifically Bacoor, Cavite City, Dasmarifias, Imus, Tagaytay, General Trias and Trece Martires. A total of 350 participants were included in the study using quota sampling. Purposive sampling was also used in selecting the participants of the study. The study used an existing, but adopted survey questionnaire to determine the risk tolerance level of the participants. In terms of socio-demographic profile, findings revealed that 51 percent of young urban professional were female and 49 percent were male. Their ages revealed that 40 percent of the participants belonged to 24-27 age group, 37 percent belonged to 28-31 age group and 23 percent belonged to 32-35 age group. Almost all (92%) of young urban professionals in cities of Cavite was college graduate, 5 percent have MS/MB/MBA units, and 3 percent were MS/MB/MBA graduate while .06 percent of them were PhD graduate. The study also revealed that most of them (41%) were more likely to balance what they had where they could assume loss with a moderate approach as they fell on average risk tolerance. Moreover, the 30 percent of young urban professionals have above average risk tolerance. These participants were aggressive risk takers who were willing to accept significant risk. Sixty four (18%) of young urban professionals conveyed aggressiveness in taking substantial risk as they exhibited high risk tolerance. The 8 percent of young urban professionals had scored below average risk tolerance, while only 2 percent were categorized to have a low risk tolerance. In terms of the respondent's investment decision, almost all (99%) invest their money into different financial/investment products. The result of this survey indicates that out of 350 young urban professionals, 81 percent of them invests in savings account, 30 percent in business, 25 percent in insurance, 18 percent in mutual funds, 15 percent in real estate, 12 percent in stocks, and others choice of financial products (1 %). On the other hand, findings of the study also revealed that there is no significant difference in the level of risk tolerance when grouped according to socio-demographic characteristics and investment decision of young urban professionals in cities of Cavite.

Submitted copy to the University Library. 07/24/2018 T-7359