Investment

Women and Finance: The 2019 Rich Thinking Quantitative Survey Findings

Barbara’s first Wealthy Pondering® white paper on girls and finance, primarily based partly on a quantitative survey of 1,000 Canadian girls, was self-published 10 years in the past. For the following 9 years, her analysis methodology was primarily interview primarily based — she performed greater than 800 of them, in reality — and qualitative. From that dataset, she distilled the top three findings in November 2019.

Though 800 interviews collectively make up a sturdy and statistically helpful knowledge supply, they span 10 years and the questions differ every year. So partly in honor of the primary Wealthy Pondering paper and likewise to ask some extra sweeping questions, Barbara and Duncan performed a quantitative online survey designed by Çiğdem Penn of XSIGHTS.

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The survey ran from 25 November 2019 to 31 December 2019, and we collected responses from over 200 girls throughout 24 international locations. About half of those girls had been aged 35–54, greater than 1 / 4 had been 18–34, and 20% had been 55 and up. The pattern skewed educated: Solely 5% had not accomplished some post-secondary schooling. About 30% had private annual revenue of lower than US$75K, 43% made US$125K or extra, and simply over 1 / 4 had been in between.

When Barbara began doing this analysis a decade in the past, she needed to bust a number of myths: that girls didn’t make investments as a result of they weren’t assured/impartial sufficient, that they had been afraid of threat, and that they wanted to be “educated” on learn how to make investments. Her hunch on the time? That each one three of those generalizations weren’t simply barely off, however completely backwards. And her interviews have since borne this out.

Sisters are doin’ it for themselves.

Just below two thirds of respondents mentioned they make their funding choices both solely by themselves (26%) or primarily by themselves with some enter from others (39%). These numbers had been even larger for non-investment monetary choices similar to banking, loans, and mortgages: 50% of girls make these choices on their very own, and 26% say they make them primarily on their very own. That provides as much as a mixed three quarters of girls!

Our survey requested girls to select the highest purpose they started investing. The most typical reply, chosen by one in three, was hardly a shock: to fund their future retirement. However the second-place reply, chosen by over 30%, was to turn into extra financially impartial. As Barbara pointed out in the 2017 article launching her seventh white paper, “You may’t be an impartial lady with out being a financially impartial lady!”


Pie graph of responses to the question Why did you get started investing in the first place?

Dangerous Enterprise

Maybe issues have modified in a decade, and maybe Wealthy Pondering has been part of that change. We hope so. But when it was ever true that girls had been excessively fearful about threat, it’s not true anymore. Fewer than one in 10 girls mentioned they had been threat averse, whereas almost three quarters mentioned they had been threat conscious, not threat averse. And about 16% self-identified as threat taker and mentioned that they had no downside with threat in any respect.


How would you describe your risk tolerance

Provided that equities are presently at all-time highs, this “risk-aware, not risk-averse” mindset reveals up in asset allocation. Though girls have traditionally been seen as badly underweight in fairness investing, slightly below half of survey respondents indicated that greater than 50% of their investable property are presently in shares, whether or not by shares, funds, or exchange-traded funds (ETFs), and 1 / 4 say their fairness publicity is over 75%.


Pie graph of responses to the question What percent of your overall investable assets do you currently have invested in equities?

We don’t want no schooling.

Males didn’t take part on this on-line survey, however after 20 years working for large, small, and medium funding corporations run by them, Barbara is aware of that the standard method to getting individuals to begin investing is to bombard them with charts, graphs, and books and to counsel they perhaps take a course or three. And that works for some.

However solely a fifth of survey respondents mentioned they started investing due to a course (10%) or a guide (9%). Most credited mentors (18%), household and pals (8%), or self-service on-line/social buying and selling (18%). That mentioned, there are numerous methods to get began: The survey gave respondents seven totally different pre-set responses, but almost 30% picked “Different.”

That girls don’t must learn a guide or take a course is sweet information: The best choice once we requested what path was most necessary for his or her investing success was “simply get began investing as quickly as potential,” with almost half (45%) of all respondents choosing this reply.

As a brand new decade begins, each measured by Wealthy Pondering experiences in addition to the Western calendar, we’re excited to see how girls and finance will change additional

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All posts are the opinion of the writer. As such, they shouldn’t be construed as funding recommendation, nor do the opinions expressed essentially mirror the views of CFA Institute or the writer’s employer.

Picture credit score: ©Getty Pictures/d3sign


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Barbara Stewart, CFA

Barbara Stewart, CFA, is a researcher and writer on the problem of girls and finance. She launched the tenth installment of her “Wealthy Pondering” collection of monographs on Worldwide Girls’s Day, 8 March 2020. Stewart makes use of her proprietary analysis abilities to work as an Govt Interviewer on a undertaking foundation for world monetary establishments in search of to achieve a deeper understanding of their key stakeholders, each ladies and men. She is a frequent interview visitor on TV, radio, and print, and she or he is a columnist for Golden Girl Finance. Stewart is on the Advisory Board for Kensington Capital Companions Restricted in Toronto. All of Stewart’s analysis is accessible on Barbara Stewart.

Duncan Stewart, CFA

Duncan Stewart, CFA, was an energetic portfolio supervisor from 1993 to 2005, and is now director of know-how, media, and telecommunications analysis for Deloitte Canada. In that position he has researched millennial attitudes to monetary companies and the gender hole for girls in IT.

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