Risk Perception and Risk Management Practices among Equity Futures Investors in Kerala

Abstract

The study examined risk perception and risk management practices among equity futures investors in Kerala and assessed whether these variables differed across selected demographic characteristics. A descriptive and analytical research design was adopted, and primary data were collected from 300 equity futures investors using a structured questionnaire. Risk perception and risk management practices were measured through separate 24-item five-point scales. The data were analysed using EDUSTAT through descriptive statistics, independent-samples t-test, one-way ANOVA, Welch ANOVA, appropriate post-hoc tests, and Pearson correlation. The findings revealed high levels of both risk perception and risk management practices among the respondents. Significant differences in risk perception were observed across gender, age, educational qualification, occupation, and monthly income. Risk management practices also differed significantly across all these demographic characteristics. Further, risk perception showed a significant positive relationship with risk management practices (r = .636, p < .001), indicating that investors who perceived greater risk tended to adopt risk management measures more extensively. The study highlights the importance of calibrated risk awareness and systematic risk-management behaviour in equity futures trading.