In our 8 years of wealth management career, we have noticed that out of 400+ clients we have, women are more patient and disciplined investors. Most of the women clients we interact they have very clear objectives and goals like children’s education, their marriage, and own retirement. They review their portfolio with us regularly and if there is any shift in funds to be done it’s done on the timely basis. Sometimes the markets are not doing well they understand that this is not the time to panic instead with our advice they start to add more money to their portfolios to take advantage of low unit cost in those times. One more interesting thing we have noticed most men have an attitude and ego that they know more than their advisors and sometimes overconfident, whereas with our women clients we don’t see that attitude. They are ready to listen and accept the suggestions more often. Women are more adept at ignoring the market noise and maintain conviction. They tend to possess the long term view and hold their portfolios for the long term. I think a woman’s ability to handle stress and be patient may possibly position them better from the investment perspective. They are much-disciplined savers and tend to chase goals instead of returns. Once they start to invest they are very regular in their investments. One of are women doctor client who used to invest in PPF and Insurance only now invests in various funds every fortnight and her portfolio are doing very well. They are not much interested in beating the market but rather meeting their own goals.
Women are also very good at budgeting. We have seen them always saving and investing for any emergencies. Their basic nature of financial planning is embedded in their nature. When my mother passed away in 2003 we found around 100000 rupees in an envelope with a note “For My Funeral Expenses” she didn’t want to burden us with that expense and saved out of her daily expenses budget over the years, that’s the kind of farsightedness women have. Out of say our 100 clients 80% women had been regular in their investments whereas 80% of the men withdraw the money or stop investing after 2-3 years.
Most women are not impulsive buyers. They will check prices and quality from various outlets before they buy anything whereas men will make that decision in few minutes so they tend to make more mistakes.
In older days women were not involved in any financial decision. When my father passed away in 1977 my mother had no idea how much salary he was getting and where all the insurance policies were, how much the provident fund was. We could get the funds with a lot of help from my Das colleagues.
Men need to listen to women more and empower them in their investment decisions. The transition is already happening. We are seeing more and more couples coming together to our office for joint discussion which is a very healthy sign. In fact, in the last 12 months, we had more new women clients approaching us than men. However, the overall participation still remains low.