Women take control of their wealth

Women take control of their wealth

Zdroj: The Slovak Spectator

SLOVAK WOMEN ARE CHOOSING SECURITY FIRST – AND EMBRACING GREATER RISK WITH AGE AND EXPERIENCE

Investing differs between men and women in several ways. While men often treat it as a hobby and a way to test their skills and knowledge, for women it is primarily a means of achieving financial security – typically without taking on extreme levels of risk. This emerges from a survey conducted as part of the NextŽeny project, carried out by the law firm Havel & Partners and the companies One Family Office, RSM and Visa, in cooperation with the research agency Ipsos, on a sample of 295 respondents.

As many as six in 10 men and five in 10 women diversify their portfolios. In other words, they do not invest everything in a single type of asset, thereby spreading risk. Part of their capital is invested conservatively in lower-risk, lower-return investments, while another part is allocated to higher-risk investments with potentially higher returns.

GREATER CAUTION, LOWER RISK

Women are generally more cautious and, more often than men, choose more conservative investments with a lower level of risk. Men, by contrast, are more likely to venture into bolder investments and aim to maximise returns even at the cost of a higher degree of risk – 19 percent of men versus 9 percent of women. In this respect, Slovak data correspond with international statistics. “A simple example is Bitcoin ownership, which stands at a ratio of 6:4 in favour of men,” explains Monika Marečková, managing partner of the advisory firm RSM. “Women, on the other hand, are more frequently interested in more slowly growing investments, but with a lower level of risk.” Willingness to take risks changes with age for both women and men. Women invest the most between the ages of 35 and 44, when they prefer a combination of conservative and diversified products. Younger women under 34 are more conservative compared with men and take significantly fewer risks. From the age of 44 onwards, their appetite for risk begins to increase. In the 55+ age group, 14 percent of women hold high-risk investments in their portfolios, which may be linked to their longer investment experience. “Surveys show that the group of financially active women in Slovakia is growing,” says Jana Holíková from One Family Office. “These are women who have either established themselves professionally, in business, or are heirs, and who feel the need to make independent decisions, educate themselves and follow trends. Within this generation, greater openness to risk in pursuit of higher returns is also natural.” Among men, by contrast, willingness to take risks declines with age. In younger age groups, one third of men hold highrisk investments, but among those aged over 55, this falls to just 3 percent.

SECURING RETIREMENT, SOLID PROPERTY

Based on the results of the NextŽeny survey, both Slovak men and women most commonly invest in order to secure themselves in retirement, protect their assets from depreciation, and provide financial security for their families.

However, their attitudes differ more markedly in two respects. As many as 34 percent of women invest because they want to have sufficient funds to achieve their personal goals and to be able to purchase what they want independently. Only one-fifth of men share this motivation. “Asset management is not merely a matter of finances, but also of identity,” says Holíková. “Through investing, Slovak women build a sense of independence and the ability to influence their own future. This is also reflected in the desire to afford themselves what they want without having to ask a husband, partner or the head of the family for money.

The second difference lies in the perception of investing. For men, it is far more often a hobby, and they seek personal satisfaction in it. This is much less the case for women. Based on the survey, women generally value the certainty that their money is accessible whenever they need it. More than three-quarters keep surplus funds in a current account, while 71 percent hold part of their money in a savings account at a bank.

THE DIGITAL APPROACH

Men and women also differ in how they obtain the information necessary for investing. Men most often draw it from investment and news websites, whereas women rely more on personal contacts. More than half of women regularly obtain information from a bank adviser or financial adviser. For the younger generation (up to the age of 34), podcasts and videos are the main sources of information. Wealthier investors with capital exceeding €830,000 prefer reputable financial portals and printed publications.

In short, the larger the portfolio and the greater the experience, the stronger the willingness to read lengthy analyses; the younger the investor, the greater the preference for “streamed” know-how.

However, digital tools do not play a key role only in obtaining information, but also in managing finances.

“An interesting finding is that around one-fifth of male and female investors actively manage their investments via digital banking,” says Ľubica Gubová, Country Manager of Visa for Slovakia. “These results clearly indicate that trust in digital financial solutions is increasing.” Almost two-fifths of female respondents in the survey stated that they handle asset management and financial matters entirely on their own. “The highest proportion of female investors who manage their assets independently is among younger women aged 18 to 34,” says Holíková of One Family Office. “They are open to online investing, are often single or in the early stages of relationships, and are accustomed to managing their own finances during or shortly after their studies.” Emancipated female investors also include single or divorced women. Among married women, the proportion is significantly lower. Compared with Czech women, however, Slovak women are more independent.

Results from the 2023 NextŽeny survey conducted in the Czech Republic shows that only 26 percent of women managed their own assets. Czech women most frequently made decisions about family assets jointly with someone else (39 percent). The latest Slovak survey shows that around one-third of Slovak women handle household finances and assets together with another person.

“While in the Czech Republic asset management is more often a joint matter, Slovak women learn to work with their own portfolios from a younger age – even when they have a partner,” confirms Holíková.

Conservative versus risky investments

• Conservative investments are generally considered to be those that offer more stable, though usually lower, returns while carrying relatively lower risk of value fluctuation. Typical examples include fixed-term deposits, savings accounts, government bonds, or secured bonds issued by banks or reputable issuers.
• By contrast, riskier investments are associated with a higher degree of value fluctuation but also with the potential for higher returns. These mainly include shares in individual companies, equity or alternative investment funds, exchange-traded funds (ETFs), and in recent years also investments in cryptocurrencies or technology projects.

NextŽeny survey

• A total of 295 active investors in Slovakia took part in the survey. They were clients and business partners of the law firm Havel & Partners and the company RSM SK.
• Of these, 51 percent were women and 49 percent were men across all age groups.