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Myths and Realities of Women in Financial Planning - Mutual Fund Investment
Posted On Monday, Mar 05, 2012
We live in a world that functions as per the beliefs and assumptions that govern us. And in the world of finance, men and women think differently, especially about money. The standard cliche is that men are financial wizards while women are the needy, shopping fanatics. The war of the genders is a never-ending tale. While it is difficult to arrive at a politically correct result to end this debate, we are busting a few myths about women and their financial capabilities.
Myth #1: Women don`t understand money as well as men do.
Reality: Women are multitaskers. Their hands are always occupied - with responsibilities towards the family, career and finance too. Women generally run the household and hence play a major role in making consumption decisions for the family. Due to their shopping habits - household or leisure, they tend to be more aware of price changes compared to men.
Myth #2: Women are emotional about money.
Reality: It is true that women look at money as an emotional investment. They tend to be more cautious about their investment approach compared to men. Actually, this approach is an advantage since this causes them to put more effort in relating with the product. Hence, they make better investment choices than men do.
Given that women tend to outlive men, and major instances where they also earn comparatively lesser, they tend to take financial decisions. Some call this kind of investing as `fear based investments` since women tend to invest in products where risk is lowest. So, while they may be emotional, they want to be sure that their savings are safe and can be used for emergencies or to reach their goals.
Myth #3: Women are not good in math and don`t have the necessary skills to make successful financial decisions.
Reality: This notion can`t be proved since there is no real evidence that women are less capable of understanding math concepts. Moreover, financial planning is very different from maths. While math skills can only give figures, financial planning involves the knack of sensible decision-making. With the countless number of financial products available, finding reliable information and making an informed investment is more important than solving math problems.
While the misconceptions will take years to erase, we are slowly getting there. It is really only in the 20th century that women have managed to bring down the glass ceiling in a male-dominated financial world. In India too, it is encouraging to see top posts in the financial fields being assigned to women who will lead the industry and facilitate avenues that will help women invest and save better. Women are much smarter and they understand the financial challenges they may face in the future much better, and plan accordingly.
Risk Factors: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Please visit – www.quantumamc.com/disclaimer to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the scheme`s objective will be achieved and the NAV of the scheme(s) may go up or down depending upon the factors and forces affecting securities markets. Investment in mutual fund units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the Sponsor / AMC/ Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited (AMC). The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.
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