Investors' attitude towards investment avenues: A comparative study of male and female investors

Abstract

Although there are numerous psychological, social and economic factors that play a crucial role in determining who makes investment decisions, the effect of gender in determining the attitudes of investors in emerging markets has not been in the spotlight of research studies. Previous studies have investigated the general investment patterns of the investors, however, there has been a lack of systematic studies to examine the inclinations of the male and female investors, by the type of investments. This research paper will bridge this gap through an analysis of the attitude difference between traditional and modern method of investing between men and women. Structured questionnaire survey method was employed in the study where sample size of 400 respondents was comprised of 200 male and 200 female capital market investors. Stratified random sampling technique was used. Data were analyzed using descriptive statistics, t tests and regression models to establish significant differences among risk perception, return expectations, and investment priorities. The research shows that male investors tend to be more risk takers and more inclined towards equity market and mutual funds as opposed to female investors who tend to prefer the less risky alternative such as the fixed deposits, gold and insurance. The investment decisions of women were based on security and long term stability and men centered on wealth building and diversification. Practically, evidence shows that financial institutions should come up with gender-friendly investment products and services that are tailored to different risk levels and expectations. The novelty of the study is that the two investment behaviors are compared, which offers some intriguing information on the difference in the way men and women invest in India and adds to the academic literature and practice of financial planning.