The time you can dedicate to your investment, the level of risk involved, and your disposable income dictate which investment options are right for you, but what about gender? Does it have an impact on your overall investment success? That’s what research from the Enterprise Investment Scheme Association (EISA) discovered in a recent survey.
Survey’s alarming findings
The survey completed by 2,000 UK residents found that 19 per cent of women feel they are given worse financial advice from independent advisers than their male counterparts. Of the women surveyed, 7 per cent believed they would have invested an average of £33,000 more if it was clear there was no gender disparity. Large financial institutions have looked over the results with vested interest.
HSBC among the first to have their say
HSBC’s head of wealth insights, Michelle Andrews, said that there were “subtle but notable factors” that deter some women from investing. While she doesn’t clarify what she believes these subtle differences are, it’s worth noting that HSBC compiled its own data on the situation before weighing in on the debate. The findings showed women are less tolerant of financial jargon, with 35 per cent of females viewing it as off-putting versus 26 per cent of males. The report also pointed out that men are more confident during the investment process than women, even if both have the same amount of investment knowledge prior to investing.
This lack of confidence strikes oddly against an influx of female entrepreneurship in previously male-dominated businesses. HSBC has championed female entrepreneurs themselves, providing the funding support for necessary items such as training and software for their businesses.
Software for financial advisers like the offerings at https://www.intelliflo.com/ is one part of the picture when it comes to gender-based investing. It helps advisers stay in control of an investment opportunity without the need to consider equality. Software, after all, doesn’t see gender, instead preferring to work within the boundaries set by complex algorithms.
Jennifer Davy, the owner of female-focussed IFA service Independent Women, claims a one-size-fits-all approach to financial planning is the reason women are less interested in investing. While this may or may not be true, it’s clear that for those in the industry, investing time and effort in attracting the female pound can offer great growth potential of its own.