Article Do Personality Traits and Emotional Intelligence of Investors Determine Their Risk Tolerance? Babli Dhiman 1 Saloni Raheja 2 Abstract In today’s scenario, investment is very important in everyone’s life. Investors always prefer the investment avenues according to their suitability, risk and the return because there are different investment avenues available in the market. There are various factors that influence the risk tolerance behaviour of the investors, such as age, gender, marital status, experience, income, household expenditure, present and future savings, future expectations of returns and future planning of the investor. But the risk tolerance is also affected by the personality traits and emotional intelligence (EI) of the investors. Thus, the present study focuses on the relation between the personality traits, EI and risk tolerance of the investors. The data was collected from 500 investors who invest through LSC Securities Ltd (formerly LSE Securities Ltd) in Punjab by using structured questionnaire. Multiple regression test was applied through SPSS to test the significance of relationship among the variables. The study found the relation of risk tolerance with personality traits and EI to be statistically significant. Keywords Emotional intelligence, investment decisions, personality traits, multiple regression, relationship Introduction Risk is an important element which is considered while making an investment decision. Risk arises when the probability of actual return on investment is less than the expected return. Risk means the existence of volatility in the occurrence of an expected incident. When the unpredictability is high, the risk will also be high. Risk may or may not involve money. Lipe (1998) defined risk was a factor which influence investment decision. The risk factor differs from the features of assets, mode of investment, investment avenues and many more. Risk and return are two sides of investment coin, when the risk is high the Management and Labour Studies 43(1&2) 88–99 © 2018 XLRI Jamshedpur, School of Business Management & Human Resources SAGE Publications sagepub.in/home.nav DOI: 10.1177/0258042X17745184 http://journals.sagepub.com/home/mls 1 Associate Professor, Mittal School of Business, Lovely Professional University, Phagwara, Punjab, India. 2 Research Scholar, Mittal School of Business, Lovely Professional University, Phagwara, Punjab, India. Corresponding author: Saloni Raheja, Research Scholar, Mittal School of Business, Lovely Professional University, Phagwara, Punjab, India. E-mail: saloni.rahejaa@gmail.com