While women are good at managing their household finances, only a few take their investments decision independently.
A recent report titled ‘UBS Investor Watch’ finds that 58% of women globally rely on their husband to take investment decisions.
The report shows that over 80% of women globally are highly involved in their household finances such as budgeting. However, when it comes to investment decisions, most women take a passive role. The report finds that only 23% of women take their investment decision independently. Moreover, 19% of women take financial decisions jointly with their spouse.
UBS surveyed 3,652 women between September 2017 and January 2019. Of these women, 2,251 were married with at least $1m in investable assets. Others (1,401) were either divorced or widowed. These women had at least $250k in investable assets. UBS also conducted in-depth interviews with 71 female respondents. The entire global sample was split across nine markets: Brazil, Germany, Hong Kong, Mexico, Singapore, Switzerland, Italy, the UK and the US.
We spoke to a few women advisors to understand how they encourage women to take active role in making investment decision.
Mumbai IFA Khyati Vasa, KV AdWealth Financial Services involves the client’s wife through a 15-point checklist form, which she shares with the prospect before meeting. The checklist captures details like if the client has joint account, nominations made for all their past investments and so on. She encourages her prospects to fill these details with their spouse and invite both husband and wife in the meeting.
Mumbai IFA Suchita Ambardekar, TecWealth conducts investor education sessions for women. She regularly conducts such sessions in beauty parlours, spa, jewellery stores who have more female employees. In addition, she holds a big event dedicated to women investors annually. Last year 250 women participated in the event. Having observed that women tend to be less assertive when it comes to financial matters, she hopes to make women financially knowledgeable through such sessions.
Agra IFA Shifali Satsangee of Funds Vedaa believes that the involvement of women in financial decisions depends on location and age group. “In my experience, women in metros are more involved in financial planning compared to women in B30 cities,” she said.
Shifali encourages her clients to bring their spouse to the meeting. She has met with some resistance to her request in small towns. However, she plans to keep trying to convince them during their regular portfolio review meetings to involve women in financial planning process.
Delhi IFA Mona Bhutani, Milestone Portfolio Consultants has observed a different trend among her young entrepreneur clients. In majority of the cases, the wife manages personal investments while the husband focuses more on business.
This Women’s Day, let us all pledge to make women investors achieve financial freedom. Encourage your men clients to involve their spouse in financial planning process.
