Emerging Economies and Women: Wealth Management Preferences and Practices in India
Abstract
A growing portion of the world’s wealth in the hands of women is posing a question mark on the existing wealth management model, which is ill-constructed for women needs, that merits immediate action. The study feels that women need a customized approach in terms of wealth management and it supports the notion of ‘distinct spheres’ of services for women and men investors. The study explores the wealth management preferences and practices followed by women from different sections of the society in a developing country India which has seen recent emergence of women as a financial force with impact.
Design/methodology/approach - The present study is an attempt - to examine female investor’s preferences regarding saving and investment products; to understand the risk behaviour of women investors; to find out the effect of occupation type of women on their attitude towards managing wealth in India; to understand the attitude of women regarding professional wealth management services in India. A sample of 120 respondents was collected using structured and a close-ended questionnaire. SPSS 20 was used to proceed with sample characteristics, descriptive analysis using frequency tables and charts, upper tailed one sample t-test and MANOVA analysis.
Findings – Women have clear preferences and attitude towards managing wealth. Employment is the basic driver behind the turning wheels of the power between men and women in terms of wealth management. Women are using very traditional, safe and easily available options for wealth management. They are more towards survival benefits by minimising the risk, which proves the persistence of risk-averse behaviour in Indian women investors. Women belonging to 21-40 years age bracket with higher educational qualifications are the probable groups which can be targeted for wealth management services.
Practical implications – Women are one of the most important and highly rewarding client segments for wealth management companies which they cannot afford to neglect. Understanding the wealth management preferences and practices will help industry players like wealth management firms to tailor their messages, services, and products to women.
Social Implications - Women have limitless potential to contribute to the economic development of the society. By following proper wealth management practices they will not only benefit themselves and their family but will also benefit the society.
Originality/value - This study contributes to the limited research by investigating the wealth management preferences and practices followed by women in an emerging country India, which is witnessing an underway radical shift in financial decision-making power due to the emergence of women as a financial force with impact. The target population for the study was the women who are doing wealth management but are not using professional wealth management services, in this way the study has tried to put forward their preferences and their practices related to wealth management.
