An Empirical Study on Determinants of Household Ownership of Risky Assets

Abstract

In India, on an average, household sector has accounted for nearly 80% of gross domestic savings (GDS) during the last decade. However, a major part of their investments are either in fixed income bearing instruments or physical assets. Hence, the authors make an attempt to analyse the  determinants of household portfolio, particularly the ownership of risky assets. The authors collected data from 345 households from southern city of Coimbatore using judgment sampling and used logit regression to study the relationship between the variables. The study found that planning, age, income and marginal tax rate significantly and positively influence the ownership of risky assets. On the other hand, pension benefit status was found to have negative influence on the ownership of risky assets.  Occupation too was found to have an impact on the ownership of risky assets.