A woman’s best protection is a little money of her own – Clare Boothe Luce
When it comes to investing, equations are very different for the female gender in India. As per DSP Blackrock Study, only 18% of single working women make their own investment decisions.
In this article, let us talk more about this subject and understand why and how women can become better investors.
Positive investing traits of women
When it comes to behavioral traits, women have certain general traits & in some ways they have an edge over men.
These include the following:
- A more collaborative approach in financial decision making
- More realistic return expectations
- Slightly more conservative in terms of risk
- Take time to establish trust with a financial advisor
- Prefer investing small amounts at regular intervals as compared to lump-sum investments
- More open to seeking professional advice
Why women need to be pro-active about their investments
There are several reasons it is no longer an option, but a necessity for women to be more pro-active w.r.t. their investments:
- Statistics show that life expectancy is longer in case of women. Also, in case of husband’s demise, the entire financial responsibility may fall on her shoulders.
- Women have always been a bit more on the conservative side in their investments, as compared to men. This requires them to invest more and by starting early, they can benefit from the power of compounding.
- More often than not, women also earn. It is important to start investments so that their money does not lie idle in the bank account.
Strategies to help women become better investors
Following are some strategies to help women become better investors:
- Teach kids importance of managing money wisely right from childhood – be they sons or daughters.
- For young women earners, start investing from the day you get your first salary.
- Be aware of your value system w.r.t. money: know that your effort to plan your finances is directly connected to your family’s well-being.
- Initiate a conversation with husband on money matters & financial goals. Make key financial decisions (like buying a house, taking a loan) jointly.
- Set time aside every month for managing and & learning more about finances.
- If need be, do not hesitate to seek professional advice.
It is imperative that women break free from the society’s traditional mindset and start learning more about saving and investing for their financial goals. Technology is a strong enabler to help women invest from the comfort of their home without compromising on their other family priorities.
The fisdom app has been designed in a simple and jargon-free manner to help, among others, non-finance people manage their money intelligently.