Survey of female investors’ preferences

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Alfa-Capital prepared a survey of female investors’ preferences

female investors preferences

In order to find out what instruments women prefer to invest in, in what currency and in what sectors they invest, experts of Alfa-Capital Management Company analyzed clients’ assets. The research also aimed to find out if women’s attitude towards risk has changed over the past year.

As it turned out, the majority of women-investors tend to be more conservative than men in the market. Women of all ages prefer to keep a significant part of their savings in bond strategies. This is mostly true for the “baby boomer” generation (born in the 40-60s), the share of those who have bonds in their portfolio is the highest here, and it has grown significantly over the last year: from 65.7% to 77.7%. The picture is similar among the category of women born in the 60s-80s of the twentieth century. (generation X): more than 60% of female investors invest in bond strategies. But younger women, the Millennials (born in the late 1980s and early 2000s) and the digital generation Z (born in the 21st century), are risk-averse: about 60% of these women invest in equity strategies and funds. Unlike male investors, female investors took less advantage of last year’s market downturn: the share of those who buy stocks remained virtually unchanged over the year.

Another peculiarity of women’s investment behavior is their adherence to ruble strategies. Representatives of all age groups prefer to invest in the national currency, but especially the baby boomer generation. The latter generation saw a noticeable increase last year: the share of those who invest in ruble assets increased from 73% to 83%, while those who prefer dollars and euros accounted for only 13% and 3.8%, respectively. Over the year, they have also slightly increased their positions in the European currency. Women of the baby boomer generation are the biggest followers of the euro: 3,8%.

By contrast, younger generations, Y (millennials) and Z, slightly reduced their investments in rubles in 2020 and increased their investments in dollars and euros. 28% of millennial women invest in U.S. currency, and among Gen Z women, more than a third of investors keep their savings in dollars. The increase in currency investment among female investors in these age groups can be explained by the fact that they have invested much more in foreign companies. For example, the share of Gen Y with U.S. stocks in their portfolios increased fivefold over the year, while the share of Gen X women increased threefold. In addition to the U.S., the United Kingdom and Mexico remain the most popular countries for investment.

The top industries in which women invest the most are oil & gas and IT. Moreover, while older generations (X and BB) predominantly buy fuel and energy companies, millenials and generation Z prefer high-tech. Over the year, the share of female investors belonging to the baby boomers in the oil and gas sector almost doubled to 26.4%, while members of the two younger generations, in contrast, reduced their positions here. On the contrary, almost a third of women from generations Y and Z invest in IT companies. The share of millenials, investing in the tech sector, tripled over the year to 31.4%, while the share of Gen X rose nearly 2.5-fold over the same period, to 20.7%.

Representatives of almost all age groups last year reduced their investments in the financial sector (the largest share of Generation X – 5.7%) and markedly increased the share of their investments in industries such as construction and metallurgy. At the same time, these sectors account for the smallest share of investors: on average, 3-5% of Gen X and Y invest in these sectors, the share of women of generation BB here is about 2.5%. Also, in addition to the real sector, last year many beautiful ladies invested in real estate and real estate funds. For example, representatives of generations X and Y became the most frequent purchasers of units in the “Rent Stream” fund. Women of the youngest generation Z were the least likely to invest in real estate.


Synopsis

Alfa Capital Management is one of the largest asset management companies. “Alfa Capital was founded in 1996 and is a pioneer in the market of wealth management for private, institutional and corporate investors. “Alfa-Capital is a part of Alfa Group Consortium


 

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