Diversity in finance does not always mean something positive. Sure when discussing a portfolio, diversity is necessary, however when highlighting gender, it is a completely different story. Barbara Stewart from the CFA Institute writes about the misconceptions of women in finance and how these trends are hurting the industry.
For Stewart, the perception that women are feminine or risk averse when referring to investing is wrong. According to the article “Sociology professor Candace Kruttschnitt of the University of Toronto provided her fascinating perspective on diversity: “There is more variation within each gender than between genders.” And perhaps more importantly, “We may show different traits at different times.”” In addition, women “invest a sizable amount of their assets outside of their portfolios because they prefer to invest in causes and concerns that matter to them, and they don’t think they can do so through the usual stocks and bonds.”
The opportunity to court female investors is clear especially for someone digitally savvy. Connecting with women via social media is key in this regard as “women are more likely to be on social networks and to spend more time per day on them.”
Stewart lays out a pretty well written case for taking a new approach towards the female investor. As we know, females make the majority of household financial decisions, and are more likely to be open to new ideas. A concerted effort to go beyond previous conceptions of female investors is necessary to move forward as a business.