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A Study on The Awareness and Knowledge about
Wealth Management among People in Kanpur City |
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| Paper Id :
19059 Submission Date :
2024-07-10 Acceptance Date :
2024-07-19 Publication Date :
2024-07-22
This is an open-access research paper/article distributed under the terms of the Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. DOI:10.5281/zenodo.13148996 For verification of this paper, please visit on
http://www.socialresearchfoundation.com/resonance.php#8
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| Abstract |
The
study aims to improve people's understanding and awareness of wealth
management. Finding out how investors
of different genders, ages, and income levels decide to invest in different
routes is the main goal of the study.
Data for the study are gathered by a questionnaire survey from 60
respondents who are working professionals or income earners. Data is collected by the 'convenience sampling method' In this study, a
descriptive research design was employed. Just 64 percent of the total
respondents claim to be knowledgeable
about wealth management. Furthermore, a large number of them are conscious yet
lack the necessary word knowledge.
As respondents' preferred investments in their portfolios included PPF, FDs, life insurance, gold, and other risk-free
assets, we can conclude that these are some well-liked sources aside from savings accounts. Savings
percentages generally show the amount of risk a person is willing to take. A high saving ratio was linked to a
high risk, while a low risk was linked to a high saving ratio. The risk increases with the size of the
return. The most relied source for information about wealth management among the respondents is family and
friends showing the trust in them, but also creates problems if the advice doesn’t goes as planned which most
definitely should change because they give advice based on their situation.
Many respondents also rely on financial advisors and books. |
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| Keywords | Wealth Management, Respondents, Life Insurance. | ||||||
| Introduction | We all have dreams, don't we?
Whether it's finally owning that cozy house, launching our dream business, exploring exotic destinations, or
just ensuring our family's future is secure. But dreams come with a price tag, and that's where the
nitty-gritty of finances comes into play. Think of wealth management as having your own personal financial coach.
They're there to guide you through the maze of banking, investment choices, taxes, and making your money
grow over time. Warren Buffet, the legendary
investor, always talks about understanding stocks as if
you're buying into a business – that's the kind of savvy advice wealth managers can offer. For most of us, building wealth
isn't just about stashing away cash. It's about making that money work for us. That's where the magic of wealth
management kicks in. Your advisor crafts a plan that suits your lifestyle and aspirations, helping your money grow through savvy investments and smart tax strategies. But let's face it, navigating finances can be daunting. That's why having a team of experts who understand your goals and challenges are invaluable. They'll tailor a plan just for you, tracking your progress every step of the way and adjusting as needed to ensure you reach those financial milestones. So, whether you're dreaming of a tropical getaway or securing your family's future, remember: with the light guidance, your financial goals are within reach. |
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| Objective of study |
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| Review of Literature | According
to Chetana Asbe and team (2024), in 'Wealth: Grow It and Protect It' by
Lucas, there's a guide for family businesses to thrive across generations. This
research looks at how 160 Indian family businesses are doing with Lucas's
ideas. Turns out, there are challenges, especially for medium-sized ones. The
next generation might feel left out, and founders might hesitate to bring in
help when needed. The suggestion? A more inclusive approach to passing on the
business, with open discussions and plans for the next generation. By following
Lucas's framework and being more inclusive, Indian family businesses can keep
their legacy alive while boosting the economy. According
to Mr. Aakash Sharma and team (2023) around the world, both investors and
governments are increasingly stressing the importance of environmentally
responsible finance. They're pushing for investors to look beyond just the
risks and returns of their investments, recognizing the broader benefits of
considering environmental impacts. This shift towards responsible investment
not only benefits the planet but also enhances India's global reputation. A
recent study delved into how Indian financial organizations are approaching
corporate responsibility and sustainability reporting. They examined the annual
reports of five emerging companies in detail: Bajaj Finance Limited, IIFL
Wealth Management Limited, Indiabulls Housing Finance Limited, Home First
Finance Company India Limited, and Nahar Capital and Financial Services
Limited. The findings revealed a growing trend of sustainable finance practices
across India's financial sector. Moreover, the study highlighted the need for
policy changes and reforms to ensure the long-term growth of financial markets
in India. These changes are crucial for making the region more appealing to
potential investors. The study emphasized the importance of these adjustments,
recognizing them as key factors for the sector's future success. According
to Singh, B. and Singh, M. (2023), financial illiteracy continues to be a
pressing global issue, despite all the progress we've seen in financial
markets. It hits hardest among marginalized groups who face social and economic
challenges, making it difficult for them to access professional financial
guidance due to financial constraints. In the study, researchers focused on
understanding the financial literacy levels among marginalized communities
living in hilly regions. They found that financial literacy is notably low
among scheduled tribes in these areas. Factors like education, income, family
dynamics, and access to the internet were identified as significant influencers
on their financial literacy levels. Recognizing these factors is crucial
because it helps us tailor interventions to address the specific needs of these
communities. By improving financial literacy, we can empower marginalized
groups to make better financial choices, ultimately contributing to their
financial well-being and resilience. According to Ankita Bhatia and team’s research (2023), this study delves into how innovation, particularly digital innovation, is reshaping wealth management. Focusing on the impact of robo- advisory services on investment decision-making and behavioral biases like overconfidence and loss aversion, it fills a gap in research, especially in developing countries like India. The authors discovered that these biases notably affect investment decisions, despite the use of robo-advisory services. In simpler terms, even with digital assistance, investors still fall prey to their own biases, like thinking they know more than they do or being overly afraid of losses. According to Solomon and Priya (2019), the study explores how women are increasingly taking charge of family wealth, highlighting the need for tailored investment options. Conducted with 250 women aged 30 to 65, including professionals and homemakers, it investigates their investment preferences and decision-making factors. The aim is to provide insights for wealth managers to better serve this growing demographic and bridge the "experience gaps" in the field, promoting inclusivity and empowerment. |
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| Methodology | A survey was conducted via Google
Forms to collect data from participants, constituting primary data for the
study. The survey was administered online through a questionnaire, employing a
random sampling technique to select the sample. Data interpretation was
conducted through graphical representations and percentage analyses. The primary focus of the research
articulated in this article concerns various aspects of wealth management.
"Wealth management" refers to the administration of an individual's
diverse forms of wealth, encompassing cash and asset management, risk management,
estate planning, tax planning, budgeting, future planning, spending control,
retirement planning, and a range of other planning aspects. A secondary
objective of this inquiry is to assess and explore the wealth management
practices, knowledge, and awareness among Indian households. Among the
secondary objectives is the examination of preferences regarding low-risk or
high-risk investments, alongside an evaluation of individuals' risk-taking
propensity, their ability to manage risks, comprehension of budgeting, spending
management, and related domains. Research, as defined, entails the
process of conducting in-depth analysis of data to unveil actual outcomes,
solutions, and societal benefits, among other objectives. Various
classifications such as descriptive research, exploratory research, and
cross-sectional research characterize research endeavors. A substantial portion
of the investigation adheres to clearly delineated Primary and Secondary
Objectives. Primary Objectives command primary focus during this investigation,
while Secondary Objectives assume a subsequent level of importance. The pivotal phases of the research
process encompass data collection and subsequent analysis. Primary data,
collected firsthand, and secondary data, recycled from past sources, constitute
the two types of information sources. Primary data may be quantitative or
qualitative and can be acquired through methods such as questionnaire
administration or interviews. Secondary data, on the other hand, comprises
information gleaned from sources such as newspapers, literature, journals, and
the like. |
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| Analysis | The method that had been chosen for data collection is by running a survey through Google form, The link of which is provided ahead. The collected data of 60 peoples is being shown below in various forms of charts along with the interpretation and analysis to follow. Demographic Details of Surveyed Audience
Desired Savings Percentage
Percentage of Income Invested
Do You Have A Proper Financial Planning
How Often Do You Review Your Financial Situation And Investment Portfolio?
The Respondants’ Level of Knowledge Wealth Management
How Important Is It For You To Seek Professional Advice For Wealth Management?
What Sources Do You Primarily Rely On For Information About Wealth Management?
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| Findings |
Demographic profile of
respondents The survey attracted
younger participants, with 56.7% aged between 18 and 30 year highlighting the
significant interest in wealth management among younger demographics. The
educational background of respondents is notably high, suggesting a
well-educated cohort engaging in wealth management. The Respondents' Level
of Knowledge Regarding Wealth Management The survey showed a
mixed reaction of respondents on weather wealth management is only useful for
businessmen or if its for everyone. Most people agreed that wealth management
can be time and cost consuming. Most people agreed that it is the best way to
utilize savings. There was a mixed reaction on weather its only useful for rich
where most people were neutral or disagreed but a lot of them agreed. Most respondents
agreed that it is useful for all. "Its useful only
for businessman": Strongly agree (19.7%), Agree (26.2%), Neutral (24.6%),
Disagree (19.7%), Strongly disagree (9.8%) "Time and cost
consuming": Strongly agree (18%), Agree (39.3%), Neutral (29.5%), Disagree
(9.8%), Strongly disagree (3.3%) "Best way to
utilize savings": Strongly agree (34.4%), Agree (39.3%), Neutral (22.9%),
Disagree (1.6%), Strongly disagree (1.6%) "It's useful for
only rich": Strongly agree (9.8%), Agree (22.9%), Neutral (26.2%),
Disagree (26.2%), Strongly disagree (15.6%) "It's useful for
all": Strongly agree (42.6%), Agree (27.9%), Neutral (24.6%), Disagree
(3.3%), Strongly disagree (1.6%) Percentage of saved and
invested income Majority of the
respondent’s desired percentage of savings was 10 to 20% and 20 to 30%. Most of
the respondents invested income ranged from 5 to 15%. People were mostly
divided on if they have a proper financial planning or not. Most relied sources for
wealth management advice The most relied source
for information about wealth management among the respondents is family and
friends showing the trust in them, but also creates problems if the advice
doesn’t goes as planned which most definitely should change because they give
advice based on their situation. Many respondents also rely on financial
advisors and books. Financial Advisors:
49.2% |
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| Conclusion |
The survey conducted
provides a comprehensive look at the behaviors, preferences, and perceptions of
individuals regarding wealth management. Educated individuals predominantly
engaged in academia or early-stage professional careers, the findings reflect a
demographic that is both cautious and strategic in its investment approaches. The survey also
highlighted a diverse reliance on recommendations, ranging from financial
experts to personal acquaintances, though with varying degrees of trust. This
reflects a cautious but open approach to navigating complex investment
landscapes, pointing towards a need for credible, accessible investment advice
tailored to young investors. In conclusion, the
behavior of these wealth management participants indicates a trend towards
thoughtful, informed investment strategies that consider a mix of financial
indicators. |
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| References |
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