65% Of Men Make Investment Decisions Independently, Compared To 44% Women: Study

Nearly two out of three or 65 per cent of men make investment decisions largely independently, but only a minority, 44 per cent of women, do so, revealed the DSP Winvestor Pulse 2022 study.

The study highlights the difference in attitudes between men and women while making investment decisions.

It was found that 40 per cent of men, compared to 27 per cent of women, make investment decisions independently or without consulting a professional advisor. Also, 67 per cent of women consult their spouse while making investment decisions compared to just 48 per cent of men.

Furthermore, 26 per cent of men consulted their fathers for investment decisions compared to 10 per cent of women. The survey also revealed that husbands (21 per cent) play a more prominent role in introducing women to investing than their fathers (12 per cent).

While most men said they were self-taught investors, a large portion, 15 per cent of the respondents, also said they were introduced to investing by their fathers, compared to 11 per cent for women.

Thirty-two per cent of women consulted a professional financial advisor, against 36 per cent of men.

Commenting on the findings, Aditi Kothari Desai, the vice chairperson of DSP Investment Managers Pvt. Ltd., in a press release on Monday, said, “More women are now confident of making sound investment decisions, but there is certainly a long way to go."

Highlighting the shortcomings that women are guided on investments more by their husbands than their fathers, Desai urged fathers “to open conversations on money and investing with their daughters at an early age” so that it would make the next-generation female investors smarter.

He added, “The right professional investment advice would make a big difference in enabling women to take control of their destiny.”

Other Key Highlights Of The Survey

Top investment goals, such as improving the standard of living, saving enough for retirement, and providing for the child’s education, for men and women are largely the same. However, more women (45 per cent) said providing for their children’s education is one of their top goals than 40 per cent of men.

On the other hand, more men said they want to live debt-free (38 per cent) compared to 33 per cent of women. In addition, 26 per cent of men said they want to start their venture, against 23 per cent of women as one of their top goals.

Seventy-nine per cent of men and 78 per cent of women said they were gender-neutral when it came to considering financial advisors.

Interestingly, a vast majority of male and female respondents, nearly 70 per cent, said they would advise their sons and daughters differently about investing. Forty-one per cent of parents said their investment strategy would differ depending on their child’s gender.

Forty-five per cent of men and women surveyed said they were investing more post-Covid, citing pandemic-induced introspection about money, higher returns, and ease of investing via apps.

The DSP Winvestor initiative is aimed at instilling confidence in women and encouraging them to take charge of their investment decisions.

Four metro cities—Mumbai, Delhi, Kolkata, and Bangalore, and six mini-metros—Indore, Kochi, Patna, Chandigarh, Ludhiana, and Amritsar were part of the DSP Winvestor Pulse 2022 Survey conducted from October to November 2022. The respondents were in the age group of 25-60.

Kalpen Parekh, the managing director, and chief executive officer of DSP Investment Managers Pvt. Ltd., said the survey will help the company better decode investor needs and guide them to meet their goals.