Nearly 2 Out Of 3 Women Rely On Spouse While Making Financial Investment Decisions, Study Shows

While women have successfully created pathways for their growth in several professional fields, the latest study by DSP Mutual Fund shows that nearly two out of three women in India do not make financial investments independently and seek the guidance of professionals, their spouse, or family members. On the other hand, data reveals that less than 50 per cent of men make financial investments independently.

The study, titled DSP Winvestor Pulse 2022 Study, which was conducted in association with YouGov - a research platform, highlighted the investment behaviour between men and women and the differences in their attitudes and engagement through the decision-making process.

Findings Of Survey

The study revealed that only 27 per cent of women made independent financial investments, whereas the number of men who made investments without consulting others stood at 40 per cent. Of these, 26 per cent of men, and 10 per cent of women, said they consulted their fathers before making any investments. When it came to consulting the spouse for making any investment, 67 per cent or nearly two out of three women consulted their husbands as opposed to 48 per cent of women.

The survey highlighted how most women rely on the authoritative male figures in their life when going ahead with any sort of financial decision. It also added that husbands (21 per cent) play a more prominent role than fathers (12 per cent) in introducing women to investing. Additionally, men claimed to be self-taught investors. Some 15 per cent of men, as opposed to 12 per cent of women, were introduced to investing by their fathers, friends, or social circle.

Noting the role that fathers play, Aditi Kothari Desai, Vice Chairperson, DSP Investment Managers Pvt Ltd, urged parents in general, and fathers in particular, to start talking to their daughters about money and investing at a young age. She said this would influence the subsequent generation to make wiser and independent investment choices, The Economic Times reported.

Choosing A Financial Counsellor

Of the people who responded to the study, 32 per cent of women and 36 per cent of men said they sought the advice of a professional financial counsellor. When selecting financial advisers, most men (79 per cent) and women (78 per cent) indicated they were gender-neutral.

Male advisors were the second largest preference for men (15 per cent) and women (13 per cent). Women slightly preferred female financial counsellors (8 per cent) to male financial counsellors (6 per cent).

Post Covid Investment

About 45 per cent of men and women stated they increased their investments after the COVID-19-induced pandemic. Men and women equally listed the accessibility of investing via apps, the desire for more significant returns than before, and the pandemic-induced introspection on finance as their top motivations for investing more after Covid.

Voth men and women mentioned reduced income and a desire to take on less risk as the primary motivations for those who stated that they were investing less after COVID. However, more men (28 per cent) than women (22 per cent) reported job loss or firm closure as a cause for decreased investment.

According to the report, men's and women's three main investing goals are to raise the standard of living, save money for retirement, and fund children's education. However, more women (45 per cent) than men (40 per cent) identified funding a child's education as one of their top priorities.

Also Read: Women In STEM Careers: Societal Biases, Challenges & The Way Ahead!