Women more cautious, strategic investors: study

cent financial adviser property financial planner

9 February 2009
| By By Amal Awad |

Women take a more cautious, strategic and consultative approach to investment than men, with women more likely to engage the services of a financial planner and invest in property, according to a recent survey.

The study of investment habits, undertaken by Rabobank’s online banking division, Raboplus, found women are 20 per cent more likely than men to use or consult a financial planner, while 54 per cent of women are more likely to own investment property compared to 46 per cent of men.

The results also showed that 15 per cent more women preferred investing in physical assets like property and 8 per cent more women considered tax benefits to be of importance.

Women investors were also found to look at past performance and seek “safe” expected rates of return more than men.

The survey results showed a variety of expectations on investment returns among women, while men of all ages generally expected returns of about 12 per cent. Women under 35 years expected returns of 13.6 per cent on their investments, women aged between 35 and 49 years expected the highest returns, 14.5 per cent, and women over 50 expected 11 per cent.

Women in the 40 to 59 years age bracket were more likely to have a self-managed superannuation fund.

Another key finding to emerge from the survey was that men tended to use the Internet for investment information more than women, with women of all ages expressing a preference for consulting people rather than the web — 58 per cent of women said they were likely to consult their partner or financial adviser compared to 48 per cent of men. Thirty-four per cent of men said they would not consult anyone compared to 23 per cent of women.

However, women in the 35 to 49 years age bracket demonstrated higher confidence in investing without consultation.

“The study shows women are looking to take more control of their investments, particularly women aged over 40 years who are more likely than men to own a self-managed superannuation fund,” said Tim Hewson, senior manager investments and managed funds, Raboplus.

“They also appear to be more strategic in their investment approach than men, seek associated tax benefits, and want a full understanding of an investment before investing.”

The study, which was conducted late last year, gauged the opinions of 213 women and 289 men with more than $150,000 in personal savings, including superannuation (but excluding physical assets).

Participants were also asked how they would allocate a $500,000 windfall to an investment portfolio. Both men and women said they would reallocate funds from their superannuation, but women were more likely to increase their allocation to cash and property than men and both increased their allocation to managed funds.

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