Last updated: 21:35 / Wednesday, 31 August 2016
According to Cerulli

Patterns of Behavior That May Warrant Taking A Different Approach with Female Investors

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Patterns of Behavior That May Warrant Taking A Different Approach with Female Investors
  • Fewer than one-third of women believe they 'need very little advice' when investing
  • 42% of women investors surveyed indicate a desire to be actively involved in the day-to-day management of their portfolio
  • Women are more likely to implement long-term, goal-oriented investment strategies that do not require day-to-day trading

According to the latest research from Cerulli Associates, a global analytics firm, in certain instances, women have different investment strategies and viewpoints than their male counterparts.

"There is opportunity for providers willing to commit resources to target this unique demographic," states Shaun Quirk, senior analyst at Cerulli. "Especially as females play more prominent roles in the financial planning process."

"We explore investor portfolio involvement in relation to gender," Quirk explains. "Fewer than one-third of women believe they 'need very little advice' when investing, compared with nearly half (49%) of male respondents. This data can help providers develop strategies to market products and services tailored to meet the evolving needs of female investors."

"There is a popular belief that men tend to be more involved in the investment process than women," Quirk continues. "According to our data, almost 60% of male investors surveyed indicate a desire to be actively involved in the day-to-day management of their portfolio, versus just 42% of women."

"Some industry professionals suggest that women are more likely to implement long-term, goal-oriented investment strategies that do not require day-to-day trading," Quirk says. "With this in mind, providers can position planning tools and holistic wealth management solutions that align with their female clients' views on portfolio management."

There is still relatively little differentiation across firm products and platforms to target female investors. Cerulli believes that financial services providers can objectively analyze the differences between the two cohorts for perspective on how to communicate and market products to these two distinct segments in relation to investing and planning for retirement.

Cerulli's third quarter 2016 issue of The Cerulli Edge - U.S. Retail Investor Edition explores what drives female investors, how women can successfully plan for retirement, and the unique challenges the wage gap presents for women.
 

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