Only 18% of single working women make their own investment decisions

POSTED BY manish ON July 26, 2013 COMMENTS (17)

I thought of sharing an interesting survey done by DSP BlackRock along with a research Agency. An overwhelming 77% of working women depend on spouse and / or parents for their investment decisions, says the new DSP BlackRock study conducted by global research agency Nielsen.

Only a minuscule 23% of the surveyed working women claim to be sole decision makers, when it comes to their own investments. This figure is even lower (18% and 13% respectively) when it comes to the proportion of single working women and married working women who take their own investment decisions.

Women and Money decisions - survey

The study, ‘Understanding Women – Usage and attitude towards financial products’, is based on a pan-India survey of more than 4,750 women spread across 14 cities (6 metro cities and 8 non-metro cities) to understand the women usage and attitudes towards financial products.

The study also examined factors that facilitate or impede their investment decisions, besides their attitude & expectations from financial products. The survey covered working and non-working women between 21 – 60 years of age, and included divorcees and widows.

According to the survey, while 92% of working women claim to be involved in the investment decision-making process, 70% of these women are actually joint decision makers and a majority of these, at 52%, are only informed about the investment decisions which have already been made.

Women are reluctant to Take Risk

The main reason why women don’t take investment decisions is that they are safety oriented and reluctant to take risk, the survey notes. Husbands also seem to dominate the investment decision making among working as well as non-working women.

While the proportion of Sole Decision Makers among working women is similar in metros at 24% and non-metros at 20%, in case of non-working women, sole decision makers are confined mostly to metros. The survey also observes that the proportion of sole decision makers among working as well as non-working women is significantly higher among the divorced and widowed.

While analyzing women’s main reasons to invest, the survey notes that future security and child’s education form the key reasons for investments, especially amongst women in non-metros. Although the desire to invest with an objective to become rich is lower compared to the other reasons, it is observed to be higher among women in metros.

Tax does not feature as a primary reason for investments among women surveyed.

Women feel controlled and disciplined about their spending

The survey also highlighted the safety aspect when it comes to women and investments. Women are inclined towards safety while investing and hence put more money in instruments that yield fixed returns. Most of the surveyed women also feel that they are controlled and disciplined about their spending.

When it comes to trusting various financial institutions, it was observed that women trust nationalized banks (88%) almost twice as much as they trust Indian private banks (43%) and foreign banks (24%).

Aditi Kothari, Executive Vice President and Co- Head Marketing, DSP BlackRock Investment Managers Pvt Ltd said, “This research was part of our Winvestor initiative to gather crucial data that can be used to spread awareness regarding financial independence amongst women.

We hope that this study is an eye opener to the alarming lack of women’s involvement in making their own investment decisions; and motivates them to take more interest in managing their own money.”

‘Winvestor’ is an Investor Education Initiative by DSP BlackRock Mutual Fund that aims to encourage women to start taking well informed financial decisions on their own by encouraging them to meet an advisor and to get interested in their personal finances.

What do you think about this survey and study done ?

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17 replies on this article “Only 18% of single working women make their own investment decisions”

  1. Arv says:

    When you say that only between 13-18% of single mothers make their own financial decsions, what do the remaining 80% do? Do they rely on financial advisers or do they just simply live paycheck to paycheck without any real concern?

    Here in Canada, the number of women directly in control of their finances is huge. My wife is the boss in our household despite my having far more financial knowledge and experience than her.

  2. SHRIDHARA RAO T V says:

    Traditional Indian women always believes in joint decission so she is not ready to take any risky path for her future. it is GOOD FOR SOCIAL BALANCING phenomena.

  3. Great study. Here is the thing: Women are more conservative and careful so they should be far more involved in fiances than they are as this study points out. I think these figures may be similar in America. As a tax and estates attorney, I always make sure that the wife is involved in the process and her input is required to get the right results for the family. This study is very important to get our women more involved in this most important part of our lives.

    1. thanks for your views on this topic 🙂

  4. Joel Trinidade says:

    ” Only 18% of single working women make their own investment decisions ” . Is it necessarily a bad thing. If they feel that someone else can manage there money better so be it. Because if an investment goes bad/toxic everbody except for the investor has a good time . Advisers have got their fees , agents have got there comissions , Fund houses have entry and exit loads etc .

    1. True. If its by one choice , then be it . But most of the women are never allowed due to the pressure of the society !

  5. Mohit Pandey says:

    This is also applicable for mens also. Most of single men do none investment, for some of them their father or other family member does.
    Awareness is required among women as well as men.

    1. Yes, it is applicable , but are you saying that its applicable to men as much as women ?

      1. Mohit Pandey says:

        Yes, it is applicable to men as much as women.

  6. Amit says:

    well,U create more these types of posts between Man and woman and get nice traffic to your website and comments ,this is the best strategy ryt now to get attension anywhere whether it is newspaper,TV shows ,Movies.people are foolish they read and follow these types of beings,If u see 80% Man still give their salaries to their wife and than she make investment decision in homes and how u say they are not risk takers ,They run the houses .You guys have gone mad .Don’t mix man and woman both have different task assigned .Woman for household things and man are for outside .if you dont maintain this ,u will get kicked off easily ,divorce ,tons of problems etc.

    1. “80% men still give their salaries to Women” – Can you share from where you get this type of interesting stats ?

      Manish

  7. Azhad says:

    Well…. that is what men want, isn’t it? Ever heard of misogyny?

    1. Never heard , what is it ?

  8. kaustubh says:

    I was doing my intern-ship for MBA finance and same thing observed by me in all the IT companies (IBM, SUNGARD, TECH M etc..) I had visited for financial planning, male population is more interested in financial aspect than female population. And not only the planning part but most of husband file their wife’s ITR. So all in all i think they can take their financial decision only when they are well aware about it. Its duty of that husband or financial planners or advisor to make aware them about these things by whatever mean they could like this blog. 🙂

    1. Yea .. thanks for Kaustubh for sharing your views on this

  9. Robinsh says:

    Nothing surprising when you are analyzing a report on women’s investment decisions who lives in a male dominating society, I don’ think even next 100 years would be enough time to help change these stats drastically.

    1. Hmm .. I agree 100 yrs will not change it, but I expect some good improvement

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