Helping You on How To Handle Women Investors better

We as Financial Advisors come across different people hailing from different backgrounds, with different financial positions and so on. Handling women investors is one of the challenges which we face.

Investments, Stock Markets are often considered as men’s domain in India. Feminine approach to investing has been branded as a losing strategy while men have dominated the financial services world since inception! For empowering women the foremost thing is not only making them financially independent but confident enough to handle their own finances. Even though women earn, they depend on their husbands or fathers for making their financial decisions.

Since time immemorial, women have divided money in different jars for various expenses. Indian women are strong budget keepers. But when it comes to investing, Female traders can be far more selective, as they spend more time evaluating before making any trade.

You may come across different types of Women Investors from different backgrounds. To be precise, the following flowchart shows it.

Young Women

When you come across young women, your motive should be making them financially independent. With the kind of cost of living that the current generation has to put up with, it makes sense that every working age member earns some part of it. This also makes them capable of taking their own decisions. Many women from conservative backgrounds with dreams and aspirations depend on their partners or parents for their fulfillment. Thus, make them understand the importance of creating their own portfolio & guide them across.

Middle Aged Women

Mostly, middle-aged women settle down to a specific option. They are not very keen towards experimenting with their finances. Many of them, in spite of earning well depend upon their Husbands for their financial matters. So, while handling middle-aged women, main thing is to make them aware about the different options which are available in the Market.

Senior Citizens

Senior women may come to you with their Retirement Corpus or else if they have inherited wealth. You have to ensure them that their wealth is in safe hands. Create a plan as per her risk appetite & money requirements. In case of inheritance also, help her go through the procedures. Also help her in Estate Planning. These women may be more conservative. Thus, plan accordingly.

You must be aware of the concept of Johari Window…It kind of fits in here!

The first quadrant depicts the Open Area wherein women know what they want. They know themselves. Similarly, they don’t mind discussing this part with others also.

The second quadrant is wherein the women don’t know, you have to make it visible to her. For instance, she may not know her risk bearing capacity, you have to make her aware of it.

The third quadrant says that no one knows about this side, neither the woman herself nor others. Thus, this is a process of exploring her insights together.

And finally, the fourth quadrant says that it is unknown to others but known to her that means you have to discover those things & highlight them.

The end note is that the right financial decisions are driven by a person’s experience & knowledge. The investors are best served by focusing on their specific needs, concerns & goals—be it a male or a female!

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