Abstract The paper aims to examine the phenomenon of risk-taking ability in response to the demographic factors of women investors in Indian stock market and analyzes the impact of demographics of women on their risk-tolerance level. Women’ risk-taking ability is very vital aspect to recognize their most favorable investment portfolio. A well-structured questionnaire was administered personally to 400 Indian women investors. The results stated that women investors in Haryana, India, have low-risk appetite. They cannot afford to take high risk. So, women prefer risk-free investment and avoid losing their money. Women’s demographic distinctiveness plays a crucial role in identifying their risk-tolerance levels. In this regard, age, marital status, education, income, experience and occupation were found to have a major impact in determining the risk appetite of women. It is hoped that the fndings will assist fnancial advisors, investment managers and fnancial consultant to understand and discover the solution to those demographic factors, which cause variations in risk-tolerance level. This study corroborates the importance of fnancial literacy to make women more aware and technically sound with dimensions of investment. Further, it will help in making ideal investment portfolio by accommodating the need of investors effectively. This study will contribute to the understanding investment behavior of investors. This empirical research represents how demographic variables infuence risk- taking ability of women and provides precious understanding that how women investors of Haryana make their fnancial decision. Keywords: Investment Behavior, Demographics, Risk Tolerance, Women Investors Financial Risk Tolerance Based on Demographic Factors of Women Investors: Indian Perspective Sanjeet Kumar*, Prashant Kumar** Introducton Taking fnancial risks makes most people nervous. Certain types of people enjoy taking risks, while others prefer stability and are averse to any type of risk. Risk tolerance is an important component in investing, which * Assistant Professor, Department of Business Administration, Chaudhary Devi Lal University, Sirsa, Haryana, India. Email: sanjeettanwarcdlu@gmail.com ** Research Scholar, Department of Business Administration, Chaudhary Devi Lal University, Sirsa, Haryana, India. Email: kumar.prashant2021@gmail.com means the degree of variability in investment returns that an investor is willing to withstand. Risk appetite is the risk-taking capacity of investors, which signifes how much risk an investor can aford to take and how much risk he can stand to take. However, the risk appetite of women investors mainly depends on their behavior as behavior determines the way to reach at a particular decision. However, behavior of women is infuenced by numerous factors such as personal factors, psychological factors, social and cultural factors, economic factors, family factors, company-specifc factors and market factors. In this way, an investor’s ability to take risk predominantly depends on various factors such as age, gender, income, experience, occupation, family background, education and fnancial status. These factors strongly infuence the behavior of women and determine their risk-taking capacity as to why they opt for moderate-risk, low-risk and high-risk investment options. When it comes to taking risk for earning returns, diferent people have diferent attitudes. Some are risk lovers, some risk averse and some are neutral toward risk. Generally, investments giving lower returns come with lower risks as well (Bhattacharjee & Singh, 2017). On the other hand, investments giving higher returns involve higher risks. A risk-averse person would prefer investing in fxed deposits, bonds, etc., as they involve lesser risk, whereas a risk lover would prefer investing his money in stocks as they have the potential to give higher returns than fxed deposits. Women with a low-risk tolerance would most likely invest in conservative options where there is little to no fuctuations in the initial investment and earnings. Moreover, lack of knowledge and awareness, insecurity and high volatility in stock market are the concerned issues for women investors that prevent them from taking high risk (Vohra & Kaur, 2016). International Journal of Financial Management 10 (1) 2020, 18-34 http://publishingindia.com/ijfm/