Investment Preferences of Women:A Comparative Study of Women Stock and Non Stock Investors

Abstract

With the changes in the social structure of a society, the individuals need to manage their wealth and resources in such a way so as to ensure that the various personal and family goals that arise during their lifetime are met. This calls for a choice of investment options that would meet the individual's needs and personal preferences. Since the investment preferences of women are different from that of men, therefore, the financial institutions need to target women as a separate market segment.Moreover, although the involvement of women in various sectors has grown over the past few decades, their participation in the stock market is still very limited. Thus, with greater number of women entering the workforce and with tremendous changes in financial behavior of women, studying the investment preferences of women has become all the more important. Therefore, the current study is an attempt to examine the investment preferences of women stock as well as non-stock investors in Punjab. For the purpose of the study, data were collected from primary sources using a pre tested, well-structured questionnaire. To analyze the collected data, Descriptive Statistics have been used. The results of the study brought out that Fixed Deposits are the most preferred investment avenue of women investors in Punjab. Women non stock investors aspire to invest in the stock market in the near future while women stock investors show less inclination towards the stock market. The finding highlights the fact that women who are already investing in the stock market are not satisfied and want to withdraw their investments from the stock market.The paper suggests that education and awareness camps should be organized especially for women. Increase in awareness about the stock market will lead to trust and satisfaction among women, thereby improving their participation in the stock market.Women being risk averse investors need to trust the stock market in order to continue investing in it.