There are a lot of investment avenues available today in the financial market for an investor with an investable surplus. He can invest in Bank Deposits, Corporate Debentures, Mutual funds and Bonds where there is low risk but low return. He may invest in Stock of companies where the risk is high and the returns are also proportionately high. The recent trends in the Stock Market have shown that an average retail investor always lost with periodic bearish tends. People began opting for portfolio managers with expertise in stock markets who would invest on their behalf. Thus we had wealth management services provided by many institutions. However they proved too costly for a small investor. These investors have found a good shelter with the mutual funds. Personality traits imply consistency and stability someone who scores high on a specific trait like extraversion is expected to be sociable in different situations and over time. Over the years investment decision has become more complex, but in many occasions lot of factors like feelings , past experience and beliefs impact investment decisions and investors act in unexpected, irrational and unwise manner. When individuals and the financial advisor make financial decisions need to be aware of relevant personality traits as well as level of financial risk tolerance.