The present study tries to find out the impact of demographic factors and risk tolerance that plays a crucial role in investors’ decision-making. The evolution of behavioral finance has brought about a revolution in the finance industry and risk is an inevitable part of this industry. The concept of ‘risk tolerance ‘ means the ability of an investor to take risks while investing in various investment options. There are a lot of investment options available to investors while some like to invest in gold and real estate others prefer to invest in equity markets and these decisions are highly impacted by psychological and behavioral factors. Demographic factors such as age, gender, income class, occupation and investment experience, and risk tolerance have a deep impact on an investor’s decision-making. Applying structural pivot analysis to data collected from 200 respondents of Raipur city, Chhattisgarh we found a significant relationship between certain demographic factors and risk tolerance. The factors such as occupation, gender, and income class show a positive correlation between risk tolerance and investor behavior while others, such as age and investment experience show a negative correlation between risk tolerance and investor behavior.