- Investor’s behaviour is influenced by many factors during investment decision making. Demographic profile of investors is also one of the decisioninfluencing factor among others .The aim of this paper is to examine the effect of demographicfactors on investors level of risk tolerance regarding the choice of investment. 100 investors from twin cities of Pakistan (Rawalpindi and Islamabad) were selected as sample, chisquare test and correlation was conducted to explore the effectof demographic factors oninvestor’s level of risk tolerance regarding the choice of investment. Result of the paper showedthat demographic factors of investors such as academic education, income level, investmentknowledge, and investment experience effect the investors level of risk tolerance, while investorsgender, marital status, occupation, and family size showed no effect on investors level of risktolerance .These results are important for managers to advise theirclientsaboutbetterarea ofinvestmentandrisklevel according to their demographic profile.