Here is another reason why IFAs should concentrate on acquiring women clients. An online survey by Fidelity Investments showed that women performed better than men did when it comes to savings and investments.
In fact, women invests and generate returns more than their male counterparts by 40 basis points. The study said, “Women consistently saved a higher percentage of their pay checks than their male counterparts at every salary level. Women saved an annual average of 9% of their pay checks, compared to an average of 8.6 percent saved by their male counterparts. While men have generated returns of 6% on their financial investments, women saw their portfolio growing by 6.4%.”
At first glance, this may appear to be a minor difference but can have a significant impact over time.
Fidelity Investments had conducted this online survey amongst 2,995 adults comprising of 1,496 men and 1,499 women 18 years of age and older across the United States. Though the conducted this research was carried out in US, the broad findings corroborate the experience in India, say experts.
The report said that women can manage the household expenses in a limited budget because of their savings habits. In fact, the survey found that women spend their money more economically compared to their male counterparts.
Even though, women turned out to be winners in the investment management game, many of the participants had doubts about their ability to invest effectively.
Surprisingly, a mere 9% believed that they would outperform men in the money managing business.
