Abstract:
The purpose of the study is to examine the impact of personality traits such as openness to experience, agreeableness and neuroticism on the investment decision of real estate investors of Islamabad and Punjab and also take risk tolerance as a mediating variable. Investors have different personality traits and their risk tolerance levels are according to their personality traits like openness investors are more willing to take the risk when they invest somewhere, agreeable investors are also risk-taker but they take risks after some calculations and sometimes they avoid risk because they listen to others advice when making an investment decision, and neurotic investors are risk-avoider because they feel insecure, worried and anxious, and they are confused when making investment decisions. To check their personality traits and risk tolerance and the impact of these variables on the investment decision of real estate investors questionnaire was developed and asked investors to fill it online or by hand. The sample size is 385 investors and questionnaires are sent to 385 investors but 216 responses are collected. SPSS is used to analyze the data and findings of the study indicates that openness to experience has a positive association with risk tolerance and investment decisions, agreeableness has a positive relation with risk tolerance but negative relation with investment decisions, neuroticism has a negative association with risk tolerance and investment decisions, and risk tolerance has a strong positive relationship with the investment decisions.
