Women with their own independent income constitute a segment that is growing rapidly. Increasingly they are influencing and directing not only where their own money is invested but they also participate in the decision making process in investments related to the entire household. With many of them being net savvy and ever eager to know more about personal finance, they form an attractive market for those advisors who are prepared to calibrate their approach.
Bulls-eye
Women value public opinion and make decisions based on what those opinions offer. And their ability to network, seek advice and consult a mentor on financial matters is at the heart of getting them to invest more.
Woman clients are more likely to value reputation. Hence, an advisor needs to have a good image in the market. Good referrals count a lot. With women investors turning increasingly savvy, you need to substantiate that your advice would aid her in increasing the value of her assets.
Educate them
There are still many more women who do not understand mutual funds. This puts an additional responsibility on an advisor. Before approaching women for investments an advisor should give a counseling session to educate them about the merits and risks in MF investment.
Women are averse to changing their advisor
Research in US suggests that women investors do not believe in changing an advisor. So, if you have a female investor as your client then it means you are in for the long haul. Women make small decisions along the way that eventually lead them to a bigger decision.
A woman should be able to trust an advisor
Bhavesh Vora, CEO Sernet Financial Consultants says, “Women want an advisor that they should be able to trust. An advisor needs to be approachable. This helps in winning her trust. An advisor can further strengthen this trust by being clear about facts and by explaining to her the pros and cons of all investments.”
Women like to research before investing
Women like to research before getting into any investments as they do not believe in taking any investing chances. Women prefer research that is not filled with jargon, numbers and charts.
In such circumstances an advisor should ensure that he/she has a website that should have a lot of research material available which is easy to comprehend.
Men are from Mars and Women are from Venus
Mukund Seshadri, M.S. Ventures believes that men are from Mars and women are from Venus applies to financial planning perspective as well. He says, “Women have a strong emotional quotient which when combined with logical and decisive frame of mind of men leads to a more complete process.”
He further adds, “Women investors have the ability to focus on detail and men generally make quick decisions. We in our company make it a point that we have joint meetings with husband and wife. This leads to getting a better and more effective financial plan in place.”
Plan for breaks
Suresh Sadagopan, Ladder 7 Financial Advisors says, “For both a man and a woman the fundamental requirement is to meet financial goals. But, a lady might take a break, a sabbatical or early retirement for which an advisor needs to plan accordingly.”
