Femme fatale

Surveys suggest that while most women do not invest themselves, they have the ideal mindset to do so.

Investor: What is that book you are reading?

Advisor: "Money Matters for Women" by Ester Burger. It contains useful information of interest to women investors.

Investor: What are the important points?

Advisor: First, the results of three surveys carried out in the US. The first one is a survey of over 50,000 women on Women's Day in which they had asked women what they would prefer, being:

(i) Rich or (ii) beautiful or (iii) famous or (iv) younger.

Seventy-one per cent said they would take the MONEY and run!

The second survey was nation-wise and revealed the following startling findings:

(i) 72 per cent of women in the 35-55 age group did not know how to invest.

(ii) 37 per cent of this age group had never made an investment decision.

(iii) 40 per cent said they spent no time on savings and investments.

(iv) 89 per cent did not know the level of the Dow Jones index.

(v) 62 per cent did not know how a mutual fund works.

(vi) 52 per cent felt they were not financially prepared for retirement.

(vii) 69 per cent did not know that equity shares had outperformed bonds, bank deposits and mutual funds over the long term.

Investor : Oh, and I thought women in the US would have more financial understanding. In fact, in India also, the level of understanding in financial matters and investments, in particular among women, is rather low. That too, in spite of high educational standards. Were there any other surveys?

Advisor: This survey carried out by Money magazine found five common characteristics associated with women which made them better investors than men. These qualities are:

Women (do not hesitate to) ask questions

Women (are quick to) seek help

Women avoid (unnecessary) risk

Women do their research (preparation)

Women think long term

Investor: These are common traits among women all over the world.

Advisor: Gloria Stevenson, a literary critic, when asked why women avoid 'risk' provided two interesting reasons: one, women have less money than men; and two more importantly, in marriage they take the biggest risk of their lives, leaving no appetite for any more risk in any other area.

Investor: Really, this is interesting.

Advisor: Robert Kiyosaki, the famous author of "Rich Dad, Poor Dad" and a successful investor also extols the virtue of shopping habits of housewives when they buy groceries and other household items for the whole year, only during supermarket sales at half the prices.

He suggests that even in equity investment, we should buy shares only during stock market crashes. Stock market crash, he says, is like a super market sale, the time to buy at half price.

He finally concludes that it is not enough to be intelligent investors; everyone should be smart investors like women. The best part is that all these qualities are also the hallmark of all successful investors like Warren Buffett.

Investor: Yes, that is very true

Advisor: You should also consciously follow these principles.

Investor: How much do I need to have to get started?"

Advisor: 'How Much' is not important, 'When' is. Beginning is everything. Earlier the better. By not doing anything, they are losing money "� to inflation. So, the time to invest starts "Now".

The writer is a chartered accountant