Demographic and socio‐economic determinants of financial satisfaction

Abstract

PurposeThe purpose of this paper is to analyse the effect of demographic and socioeconomic factors on the financial satisfaction of the individual investors in India, who belong to the urban socio‐economic classification segment‐A.Design/methodology/approachBased on a sample of 374 individual investors, one‐way ANOVA, t‐test and correlation was conducted to find out which demographic and socio‐economic variables were associated with the individual's financial satisfaction levels.FindingsThe results of the research showed that factors such as age, marital status, occupation, work‐experience, income, saving rate, nature of household accommodation and investment tenure, impact the individual's financial satisfaction levels.Practical implicationsWith the increase in the household income levels in India as a result of the tremendous growth and expansion that the Indian economy has witnessed over the last decade, there has been a growth in the demand for financial planning and wealth management services too. The purpose of financial advisory services is to understand the clients' behaviour and needs and accordingly provide advice on the various aspects of financial planning and wealth management. The findings of the study have implications for policy makers and financial service providers.Originality/valueThough, the demographic and socio‐economic correlates of financial satisfaction have been extensively researched in the literature, there has been scant empirical research on the Indian financial consumer. This study fills this gap and is the first of its kind on the Indian Individual investor.