Research conducted on men and women long term savers by the Swedish Investment Fund Association together with Kantar Sifo Prospera has found more women rate their knowledge of investment funds as lower than the average than men.
The finding is based on answers to questions that sought to find out not only how confident retail investors were about their understanding of investment funds, but also differences in bias towards different risk levels.
When asked “How would you judge your knowledge about savings and personal finance (pensions, tax and different types of savings) compared to other people of the same gender as yourself?” just over a quarter, 26% of female respondents answered “My knowledge is worse than the average”, which was significantly higher than the 18% of men who gave the same answer.
Just 9% of women answered that they have better knowledge than average, against 23% of men.
Additionally, the research found that younger women feel even less able, with 31% judging that their knowledge is lower than the average in the 18-42 age bracket.
Fredrik Nordström, Association chief executive, said: “From an equality perspective it is important to strengthen women’s self-esteem when it comes to personal finance and savings. We face many important personal finance decisions in our daily lives – everything from daily finances and property purchases to long term savings and insurance. Having an economic buffer offers security and freedom.”
“There is no reason for women to be less confident when it comes to personal finances. We can, for example, look to the outcome of the Premium Pension, where there is no difference between men’s and women’s returns. We can also see that there are twice as many men than women who have debts registered at the Swedish Enforcement Authority.”
Other key findings of the research include: women save smaller amounts and often adopt a lower risk profile than men.
Women’s most common selection involves Swedish equity funds and balanced funds, which account for 21% each, while Swedish equity funds dominate men’s choices, with 37% of those surveyed noting this category as their favourite.
To read the full research results (in Swedish) click here: http://fondbolagen.se/PageFiles/835/Resultat%20sparande%20kvinnor%20och%20m%c3%a4n%20mars%202018.xlsx