-Journal of Arts, Science & Commerce ■ E-ISSN 2229-4686 ■ ISSN 2231-4172

PREFERENCES FOR WEALTH MANAGEMENT SERVICES:

AN EMPIRICAL STUDY IN UDAIPUR, RAJASTHAN

Dr. Dhiraj Jain, Ms. Anupama Jhala,

Asistant Professor, Research Scholar,
Pacific Institute of Management, Pacific Academy of Higher Education and
Udaipur, India Research University, Udaipur, Rajasthan, India

ABSTRACT

Money has its own importance for everyone in this world. People work hard throughout their life
and most of their daily activities are ultimately circled around money making. But wealth is more
than money and it means a lot to everyone. The problem comes when people are not well aware
with financial tools and options and hence are confused when it comes to manage their own
wealth, and then it becomes mandatory to choose wealth management services provided by banks
or other financial institutions. The accumulation of wealth has prompted the development of
wealth management services today mostly provided by private banking which optimize, protect
and manage the financial goal of the investors. Wealth management is equally important as
money making. This study proposes to outline the concept of ‘Wealth Management’ and traces its
growth and future in India. The main objective of this study is to identify the preference for
wealth management services and to study the relation between various demographic determinants
and the preference for wealth management services. A survey was been carried out by using
questionnaire distributed among 100 respondents in Udaipur district. The results were analyzed
using. The study found that there was a significant correlation between various demographic
determinants in determining wealth management services preference.

Keywords: Wealth management, Portfolio, financial planning, bank financial services.

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INTRODUCTION:
Money has its own importance for everyone in this world. I order to be wealthy, one not only has to earn money
but should also mange it wisely. After the creation of wealth it becomes more important to protect it by managing
it in planned manner. Following a proper saving and investment plan and utilization of wealth in a systematic
manner provides a secured future for one and family. Nowadays there are variety of investment options and plans
with complex risks. So most people get confused while choosing the best option. The fear grows with the size of
the investment involved. Greater diversification is needed then in earlier stages of investing. This is where
independent financial advisers or large corporate entities help their clients through professional wealth
management. Wealth management is more than just investment advice, as it can encompass all parts of a person’s
financial life. It is a service provided by financial institutions to help investors protect and grow their wealth. It
involves providing a diverse range of services, such as financial planning, investment management, tax planning
and cash flow and debt management, based on client requirements. It has also been defined as a service to
optimize, protect and manage the financial well being of individual, family or corporation.
It is one of the fastest growing sectors of the financial services industry. It addresses every aspect of a client’s
financial life in a consultative and a highly individualized way. It uses a complete range of products, services
and strategies. What wealth management requires is connecting with client on a personal level that is way
beyond the industry norm”. Wealth mangers help individuals to identify their goals and achieve them. Goal
setting which was outside the scope is also becoming an integral part of wealth management services.
This industry is gaining significance every day because of the phenomenal increase in the number of the super
rich in India. Various private and public sector banks have also started providing wealth management services to
help high net worth individuals and affluent people to protect and grow their wealth.
In India, Wealth management services include investment in equity-linked portfolio management services,
structured products, insurance and mutual funds. But companies have started broadening the scope to include
tax planning & assessment, real estate, art advisory and estate planning, within their ambit.

REVIEW OF LITERATURE:
(Budge, 2007) addressed a segment of the wealth management market which he believes is not yet served
adequately: business owners who are facing a number of unique challenges surrounding management of their
overall balance sheet through time. In his study (Ceru, 2004) suggests that financial service institutions' interest
in the “new wealth management” is a natural evolutionary response of institutions seeking to regain and renew
their competitive advantage and discuss the business and technology drivers that should be considered by
financial institutions when deciding to implement technology solutions to enhance their wealth management
business. (Isdale, 2006) discusses the steps that wealthy individuals and their advisors can take to increase the
efficiency and effectiveness of their wealth management efforts.
The book by (Pompian, 2012) intended to be a guide both to understanding irrational investor behavior and
creating individual investors portfolios that account for these irrational behaviors.(Dwivedi, Dwivedi, & Singh,
2008) state the importance of Indian financial institution in choosing wealth management business in foreign
countries for its success, most probably middle-east countries, which provide some relief for the downward
moving Indian economy. The data in the interview study by (Hamilton, 1992) address investment patterns, criteria
for selecting investment managers, cash management, and investment strategy. The objective of the article (Amenc,
Martellini, Milhau, & Ziemann, 2009) was to shed light on the potential benefits of asset-liability management
techniques, originally developed for institutional money management, in a private wealth management context.
(Brunel, 2002) in his book identifies the factors which demand a different approach from that of traditional
portfolio management strategy. He suggests a new approach to wealth management, proposing practical steps
which will take a person beyond the role of portfolio manager to that of “wealth manager”.
(Shamsuddoha, 2005) in his paper looks at the key strategies being applied by wealth management and their
competitive position. The wealth management strategies were compared by (Pang & Warshawsky, 2009) for
individuals in retirement, focusing on trade-offs regarding wealth creation and income security.(Driga, Nita, &
Cucu, 2009) examines the features of private banking business focusing on the substantial growth in private
banking over the last decade as commercial banks have targeted up market high net worth individuals.

STATEMENT OF THE PROBLEM:

Today wealth management plays an important role in individual’s life. So the study attempts to know the
importance of wealth management and the effects of demographic determinants on the preference for wealth
management services in Udaipur.

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 -Journal of Arts, Science & Commerce ■ E-ISSN 2229-4686 ■ ISSN 2231-4172

OBJECTIVES OF THE STUDY:

1. To study the impact of demographic factors on the preference for wealth management services.
2. To study the impact of demographic factors on the perception regarding benefits of wealth management
services.
3. To study the impact of demographic factors on the perception regarding quality of wealth management
services.

HYPOTHESIS FRAMED FOR THE STUDY:

H01: There is no significant association between the demographic determinants and the preference for wealth
management services.
H02: There is no significant association between the demographic determinants and the perception regarding
benefits of wealth management services.
H03: There is no significant association between the demographic determinants and the perception regarding
quality of wealth management services.

RESEARCH METHODOLOGY:
The main objective of the study is to identify the impact of the demographic determinants on the preference for
wealth management services, on the perception regarding benefit of wealth management services and on the
perception regarding the quality of wealth management services.

DATA COLLECTION:
The study is based on the primary data collected from various respondents through a questionnaire. The
questionnaire consisted of both open-ended and closed-ended questions. A pilot survey was conducted and on
its basis a final questionnaire was developed. A Google document in the form of survey was created and
circulated online to individuals who normally invested in the financial markets.

SAMPLE DESIGN:
The selection of samples of respondents was made by following the random sampling technique . The
questionnaire was circulated among 125 respondents of which 117 were complete.

ANALYSIS OF DATA:
Chi-square has been used as a test for association and non-association between variables. The data has been
analyzed using the statistical software and Microsoft Excel.

DATA ANALYSIS & INTERPRETATION:

Table 1: ( Demographic Profile )
Respondents Demographics Frequency Percent
Male 66 56.4
Gender Female 51 43.5
Total 117 100
Yes 32 27.3
Availed Wealth Management Services No 85 72.6
Total 117 100

< 30 years 37 31.6

31-40 years 40 34.1
Age 41-50 years 21 17.9
> 50 years 19 16.2
Total 117 100
Graduate 19 16.2
Academic Qualification Post Graduate 46 39.3
Professional Degree 52 44.4

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 -Journal of Arts, Science & Commerce ■ E-ISSN 2229-4686 ■ ISSN 2231-4172

Total 117 100

Married 72 61.5
Unmarried 37 31.6
Marital Status Widow/Widower 4 3.4
Divorcee 4 3.4
Total 117 100
Professional 48 41.0
Self-employed 19 16.2
Occupation Salaried 40 34.1
Retired 10 8.5
Total 117 100
< Rs 100000 16 13.6
Rs.100000-300000 51 43.5
Annual Income
Rs 300000-500000 27 23.0
> Rs 500000 23 19.6
Total 117 100
Table 1 show that the majority of the respondents were male members married and belonged to the age groups
of 31-40 years. Maximum respondents had a professional degree with annual income between Rs.100000-
300000. A significant proportion of the sample had not availed wealth management services.

Table 2: Cross tabulation between respondents profile and whether

they have availed wealth management services or not.
Have you availed wealth management services ?
Total
Yes No
< 30 years 8 29 37
Age
31-40 years 9 31 40
41-50 years 6 15 21
> 50 years 9 10 19
Total 32 85 117
Graduate 9 10 19
Academic
Post Graduate 15 31 46
Qualification
Professional Degree 8 44 52
Total 32 85 117
Occupation Professional 13 35 48
Self-employed 7 12 19
Salaried 12 28 40
Retired 0 10 10
Total 32 85 117
Male 18 48 66
Gender
Female 14 37 51
Total 32 85 117
< Rs 100000 4 12 16
Annual Rs 100000-300000 12 39 51
income Rs 300000-500000 8 19 27
> Rs 500000 8 15 23
Total 32 85 117
Marital Married 21 51 72
status Unmarried 10 27 37
Widow/Widower 1 3 4
Divorcee 0 4 4
Total 32 85 117
The above table shows that the individuals who had availed wealth management services were male with the

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 -Journal of Arts, Science & Commerce ■ E-ISSN 2229-4686 ■ ISSN 2231-4172

age group of 31-40 years and above 50 years. Majority of them were married and post graduate.
Table 3: Respondents preferences for wealth management services
Preference of wealth management services
Highly Less Not Total
Preferable
preferable preferable preferred
< 30 years 12 19 4 2 37
31-40 years 10 22 4 4 40
Age
41-50 years 6 12 1 2 21
> 50 years 5 9 3 2 19
Total 33 62 12 10 117

Graduate 4 12 1 2 19
Academic
Post Graduate 13 23 5 5 46
Qualification
Professional Degree 16 27 6 3 52
Total 33 62 12 10 117

Professional 12 25 5 6 48
Self-employed 9 8 1 1 19
Occupation
Salaried 9 25 3 3 40
Retired 3 4 3 0 10
Total 33 62 12 10 117

Male 20 32 8 6 66
Gender
Female 13 30 4 4 51
Total 33 62 12 10 117

Annual < Rs 100000 5 7 4 0 16

Income Rs 100000-300000 13 30 3 5 51
Rs 300000-500000 9 12 3 3 27

> Rs 500000 6 13 2 2 23
Total 33 62 12 10 117

Married 22 36 9 5 72
Unmarried 11 20 3 3 37
Marital Status
Widow/Widower 0 2 0 2 4
Divorcee 0 4 0 0 4
Total 33 62 12 10 117
Table 3 shows that individuals belonging to the age group between 31-40 years with academic qualification as
professional degree preferred these wealth management services. Majority of them were with the annual income
between 1-3 lakhs.
HYPOTHESIS:
H01- There is no significant association between the demographic determinants and the preference for wealth
management services.
Table 4: Chi-square test for preference for wealth management services
Chi-Square Df Tabulated Value Accepted or rejected
Age 2.472 9 16.91 Accepted
Academic Qualification 2.334 6 12.59 Accepted
Occupation 11.138 9 16.91 Accepted
Gender 1.382 3 7.81 Accepted
Annual income 7.572 9 16.91 Accepted
Marital status 14.181 9 16.91 Accepted
*Significant at 5% level of significance
The Null hypothesis is accepted in all the cases indicating no significant association between the demographic

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 -Journal of Arts, Science & Commerce ■ E-ISSN 2229-4686 ■ ISSN 2231-4172

determinants and the preference for wealth management services i.e., the demographic determinants do not
affect the preference for wealth management services.
Table 5: Perception regarding the benefits of wealth management services
Perception regarding benefits of wealth management services
Total
Highly Less
Beneficial Irrelevant
beneficial beneficial
< 30 years 6 29 1 1 37
Age 31-40 years 8 29 0 3 40
41-50 years 3 16 1 1 21
> 50 years 3 14 2 0 19
Total 20 88 4 5 117

Graduate 2 16 0 1 19
Academic Post Graduate 6 37 2 1 46
Qualification Professional
12 35 2 3 52
Degree
Total 20 88 4 5 117

Professional 7 38 2 1 48
Self-employed 3 13 2 1 19
Occupation
Salaried 8 29 0 3 40
Retired 2 8 0 0 10
Total 20 88 4 5 117

Male 11 49 2 4 66
Gender
Female 9 39 2 1 51
Total 20 88 4 5 117

< Rs 100000 2 12 2 0 16
Rs 100000-
Annual 6 41 1 3 51
300000
income Rs 300000-
5 21 1 0 27
500000
> Rs 500000 7 14 0 2 23
Total 20 88 4 5 117

Married 8 60 2 2 72
Marital Unmarried 11 24 1 1 37
status Widow/Widower 1 3 0 0 4
Divorcee 0 1 1 2 4
Total 20 88 4 5 117
The above table shows majority of individuals who regarded wealth management services as highly beneficial
were male with age group between 31-40 years with professional degree and annual income above 5 lakhs.

HYPOTHESIS:
H02: There is no significant association between the demographic determinants and the perception regarding
benefits of wealth management services.
Table 6: Chi-square test for benefits of wealth management services
Chi-Square Df Tabulated Value Accepted or rejected
Age 6.780 9 16.91 Accepted
Academic Qualification 4.397 6 12.59 Accepted
Occupation 7.308 9 16.91 Accepted

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Gender 1.234 1 3.84 Accepted

Annual income 12.475 1 3.84 Rejected
Marital status 34.353 9 16.91 Accepted
*Significant at 5% level of significance
Table 6 shows that age, academic qualification, occupation, gender and marital status have no significant
association with the perception regarding benefits of wealth management services, whereas annual income have
significant association with the perception regarding benefits of wealth management services
Table 7: Perception regarding quality of wealth management services
Perception regarding quality of wealth
management services Total
Good Medium Bad Irrelevant
< 30 years 6 27 3 1 37
31-40 years 8 28 0 4 40
Age
41-50 years 3 14 0 4 21
> 50 years 2 16 1 0 19
Total 19 85 4 9 117

Graduate 2 15 0 2 19
Academic Post Graduate 5 36 4 1 46
Qualification Professional
12 34 0 6 52
Degree
Total 19 85 4 9 117

Professional 7 36 2 3 48
Self-employed 2 13 1 3 19
Occupation
Salaried 8 29 0 3 40
Retired 2 7 1 0 10
Total 19 85 4 9 117

Male 10 47 2 7 66
Gender
Female 9 38 2 2 51
Total 19 85 4 9 117

< Rs 100000 2 12 1 1 16
Rs 100000-
5 39 2 5 51
300000
Annual income
Rs 300000-
5 20 1 1 27
500000
> Rs 500000 7 14 0 2 23
Total 19 85 4 9 117

Married 8 56 2 6 72
Unmarried 10 24 2 1 37
Marital Status
Widow/Widower 1 3 0 0 4
Divorcee 0 2 0 2 4
Total 19 85 4 9 117
The above table shows that the individuals who regarded quality of wealth management services as good were
male with age between 31-40 year and with professional degree.

HYPOTHESIS:
H03: There is no significant association between the demographic determinants and the perception regarding
quality of wealth management services.

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Table 8: Chi-square test for quality of wealth management services

Chi-Square Df Tabulated Value Accepted or rejected
Age 12.382 9 16.91 Accepted
Academic Qualification 12.57 6 12.59 Accepted
Occupation 6.414 9 16.91 Accepted
Gender 1.891 3 7.81 Accepted
Annual income 7.073 9 16.91 Accepted
Marital status 17.149 9 16.91 Rejected
*Significant at 5% level of significance
Table 8 shows that age, academic qualification, occupation, gender and annual income have no significant
association with perception regarding the quality of wealth management services, whereas marital status have
association with the perception regarding quality of wealth management services.

CONCLUSION:
The study concluded that-
• The demographic determinants do not affect the preference for wealth management services which shows
lack of awareness among general public.
• Measures could be taken to educate the people regarding the importance of these services to manage their
wealth
• Annual income has an association with perception for benefits of wealth management services. Marital
status has some association with perception for quality of wealth management services as compared to other
demographic determinants.

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