A recent study by AVIVA Life insurance reveals that many women have started actively planning their finances. Cafemutual met with two women advisors to find out what it takes to plan for women investors.
Nisreen Mamaji, MoneyWorks Financial Advisors
I feel women are the more patient investors; they do not let the market volatility affect them and tend to stick to the financial plan. While men are usually autocratic in their decision-making, women are more inclusive and usually include their spouse in the financial planning process. This might be because men are more independent in taking financial decisions.
Women also tend to have different set of challenges when it comes to financial planning. In most Indian households, women are not included in the financial planning process from a young age; this makes them apprehensive of taking financial decisions. So often I find that even when the men bring their wives to meet me, they tend to be least participatory in the decision-making.
When IFAs talk to women investors, they must first help them overcome their fear of taking financial decisions. They must make them realise that they are already engaged in financial decision of a family, like budgeting for the monthly expense, or saving a portion of the monthly income. In addition, it helps not to start talking figures directly, instead ask them about their goals for themselves and their family. Once you simplify financial planning for them, they will be more comfortable seeking your advice.
Yogita Dand, AskY Financial Services
Women are the most loyal clients an advisor can have, though they are more difficult to convert. Women are more cautious when it comes to placing their trust in anyone, especially when it concerns financial matters. Advisors must understand that women have always been dependent on men for their financial decisions, be it husband, father or colleague.
I try to overcome this by insisting my clients bring their wives for the financial planning process. This helps in onboarding them eventually. When you have a woman’s trust you can depend on the endless referrals she will send to you. This way you can tap on her circle of friends once she is convinced about you.
This has been my experience during IAPs, where I focus on goal based investing and importance of investing early. Most of my women clients came through these programmes. When these women related to what I spoke, they were prompt not only in committing their own money, but started bringing in other women too.
