Gender Impact on Personal Investment Strategies

Abstract Research purpose. This study is dedicated to investigating the peculiarities of personal investment decisions among female and male investors to analyse the gender differences that occur during personal investment strategy establishment processes. This study is based on the literature research and aims at exploring the existing knowledge on financial behaviour and gender influence on personal investment selection. The importance and originality of this study are that it assesses the collective evidence in the personal investment field and explores its processes through the prism of gender impact. The understanding of the gender bias impact on the personal investment strategy development process can play an important role in addressing the issue of gender inequality in finance and investment areas. This paper is dedicated to answering the question of how gender impacts personal investment strategies. Design/ Methodology/ Approach. The major task was to conduct the research on the male and female personal investment decision peculiarities presented in literature sources and to prepare the survey to conduct practical research while applying theoretical knowledge and presenting the findings along with the suggestions on how to improve the female situation in investment field. Findings. The most prominent finding to emerge from this study is that females lack knowledge and understanding in finance and especially investment areas; therefore, this leads to inadequacy in self-confidence in finance and investment matters and, as a result, neglect of successful personal finance management and, more significantly, poor investment strategy decisions. Originality/ Value/ Practical implications. The main goal of the current study was to determine whether the gender difference exists in personal finance and especially investment area, to refine the reasons behind this phenomenon, to analyse what could be done to improve the situation and introduce suggestions for further research. The research was done based on relevant literature, reports, surveys, statistical data used for literature analysis, and Lithuania’s case study for the practical part of the research. The primary objectives were to find out what are the main peculiarities between males and females when it comes to personal investment strategy choices and to analyse financial literacy and investment fields through the female perspective. The main points revealed during this study were that men tend to invest more often than women, as females, in general, prefer to save rather than invest; women tend to choose less risky investment strategies compared to men or save rather than invest. The main factors of this phenomena are the influence of cultural, social, or psychological factors, low financial literacy level, differences in economic status, longer life expectancy, the lack of confidence when it comes to knowledge applied to the financial decisions; males are more likely to choose a higher-risk investment strategy and to be more confident in their investment ability even if they have less knowledge on the matter. The analysis of Lithuania’s case has also confirmed the main literature review findings and reported females to lack financial and investment knowledge, spare funds and prefer to save rather than invest or invest into the low-risk tools.

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HOW FEMALE DIFFER IN DECISION MAKING FOR PERSONAL INVESTMENT STRATEGY

Financial and credit activity problems of theory and practice ◽

10.18371/fcaptp.v5i40.244902 ◽

2021 ◽

Vol 5 (40) ◽

pp. 92-98

Author(s):

M. Mikelionyte ◽

A. Lezgovko

Keyword(s):

Financial Literacy ◽

Good Practice ◽

Investment Strategy ◽

Personal Finance ◽

Jel Classification ◽

Investment Strategies ◽

Personal Investment ◽

Practice Method ◽

Female Investment ◽

And Gender

Abstract. This study investigates Lithuanian females’ personal investment peculiarities in line with Australia’s case analysis and application as a good practice method. Based on many publicly available research females tend to have less knowledge about finances in general and particularly investment processes; hence, it leads to their lack of interest into investing and the possibility of poor money management. This issue might be solved by investigating why it appears first and adopting the practical example from countries with developed investment market. In the case of comparison of personal investment strategies among Lithuanian and Australian females the two sets of questionnaires have been used to collect the data for further analysis. The main findings revealed by the survey were, that women in Australia had a higher financial literacy level, invested more often, and chose broader variety of investment instruments compared to Lithuanian females. Moreover, the significant discovery of the article disclosed that Lithuanian females chose not to invest due to the lack of additional funds and the shortage of financial knowledge. The main limitation occurred during the research was the lack of the available data on personal investment topic in Lithuania’s official statistic sources such as The Lithuanian Department of Statistics. The results of the research contribute towards improving Lithuanian female personal finance and investment areas and could be applied to further studies or used for the education program dedicated to financial literacy among women in Lithuania creation. Furthermore, this article creates an original value to personal finance, investment, and financial literacy areas in Lithuania by introducing an idea to not only conduct more studies in these fields, but also to use comparative analysis and good practice method from the countries that demonstrates high achievements in personal finance and gender equality areas. Keywords: personal investment management, female investment, financial literacy, investor’s profile, investing, investment options, investment strategies. JEL Classification G51, G53 Formulas: 1; fig.: 5; tabl.: 1; bibl.: 15

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The Effect of Financial Literacy on Personal Investment Decisions amongst Medical Practitioners in Sri Lanka

European Journal of Business Management and Research ◽

10.24018/ejbmr.2021.6.4.952 ◽

2021 ◽

Vol 6 (4) ◽

pp. 123-126

Author(s):

S. H. M. L. Walakumbura

Keyword(s):

Sri Lanka ◽

Financial Literacy ◽

Investment Decision ◽

Investment Decisions ◽

Financial Knowledge ◽

Primary Data ◽

Policy Makers ◽

Medical Practitioners ◽

Personal Investment ◽

The Impact

Financial literacy is very essential for any individual in order to efficient and effective decisions regarding their personal investments. Based on that scenario, this study examines the impact of financial literacy on personal investment decisions amongst medical practitioners in Sri Lanka. Personal investment decision has been considered as the dependent variable while financial knowledge, financial skills and financial attitude has been considered as the proxies for the independent variable. Deductive approach has been employed using primary data which is obtained from 205 respondents throughout the country. Descriptive and inferential statistics such as multiple linear regression have been used for the analysis purpose. The results suggested that there is a significant impact between the financial knowledge and financial skills on investment decision while the financial attitude does not have a significant impact on the investment decision. The empirical findings of this study are helpful for any individual who is willing to take effective investment decisions, academics, policy makers and all other related interested parties.

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Exploring the Quality of Pupils’ Financial Literacy

Acta Educationis Generalis ◽

10.2478/atd-2020-0029 ◽

2020 ◽

Vol 10 (3) ◽

pp. 175-188

Author(s):

Jozef Lukáč ◽

Lenka Danková ◽

Slavomíra Stašková ◽

Marek Meheš ◽

Zuzana Kudlová

Keyword(s):

Financial Literacy ◽

Economic Status ◽

Modern Society ◽

Well Being ◽

Research Paper ◽

Financial Decisions ◽

Socio Economic Status ◽

State Administration ◽

Definition Of ◽

Long Term Impact

AbstractIntroduction: Education is an important tool for improving many aspects of life, including socio-economic status or well-being. The paper is aimed at monitoring the financial literacy of pupils in Eastern Slovakia.Methods: The contribution will contain the results of the survey. We analyse in detail the theoretical definition of financial literacy, strategy and measures of the state administration bodies in the field of improving financial literacy of more than 2000 pupils.Results: The result of the research paper is an analysis of the achieved data and their characteristics.Discussion: This part of the research paper deals with the areas of financial literacy of pupils in Slovakia. Education is an important tool for improving many aspects of life, including socio-economic status or well-being.Limitations: Participants of the electronic questionnaire participated in the answers according to the activities and projects prepared by a particular elementary school.Conclusion: Higher life expectancy, pension reforms, the availability of a more comprehensive range of financial products and services mean that the ability to make well-informed financial decisions is increasingly considered an important life skill. If a school fails at certain points during a child’s study, it is assumed that this will have a negative long-term impact on the child’s life in the future, as ending a school without sufficient qualifications can lead to difficulties in ensuring equal participation in the financial, civil and social aspects of modern society. Education is an important tool for improving many aspects of life, including socio-economic status or well-being.

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Long-term Portfolio investment: New insight into Return and Risk

Voprosy Ekonomiki ◽

10.32609/0042-8736-2015-10-54-77 ◽

2015 ◽

pp. 54-77

Author(s):

A. Abramov ◽

A. Radygin ◽

M. Chernova

Keyword(s):

Portfolio Management ◽

Traditional Approach ◽

Investment Strategy ◽

Strategy Development ◽

Investment Horizon ◽

Investment Strategies ◽

Fixed Income ◽

Portfolio Rebalancing ◽

Holding Period

The article examines the influence of investment horizon increase on comparative advantages of main asset classes and on the principles of investment strategy development. Unlike in the traditional approach of portfolio management theory, the study shows that for long-term investments corporate bonds have the advantage over equity in terms of return-risk tradeoff. This fact argues in favor of the fixed-income oriented (including infrastructure bonds) investment strategies for pension funds and institutional investors. The article draws special attention to the importance of regular portfolio rebalancing for long-term investors. In this case the variation of returns decreases and the variation of risks increases with the holding period. Consequently, with horizon increase a long-term investor should allocate more assets in the low-risk financial instruments in order to keep a certain level of return-risk tradeoff. This argument becomes increasingly important for the purposes of pension savings management.

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AWARENESS ON PENSION PLANS-A STUDY OF INVESTORS’ IN BENGALURU CITY

INFORMATION TECHNOLOGY IN INDUSTRY ◽

10.17762/itii.v9i2.445 ◽

2021 ◽

Vol 9 (2) ◽

pp. 1017-1021

Author(s):

Pushpa B.V.

Keyword(s):

Financial Literacy ◽

Economic Status ◽

Pension Plans ◽

Willingness To Participate ◽

Defined Contribution ◽

Financial Decisions ◽

Defined Contribution Plans ◽

Income Adequacy ◽

To Come ◽

And Gender

Individuals make inconsistent, irrational financial decisions mainly due to disproportionate time preferences. Bias and procrastination prevail. Along with a default option, there is a need for a customized plan with individuals' socio-cultural and economic status. Low participation rates are mainly due to a lack of awareness of pension literacy and behavioral aspects. Individuals have failed to create a corpus to protect themselves for retirement as there is a lack of awareness to suitability of a plan to one’s situation, failure to measure income adequacy at retirement, not able to identify the link between contributions made and pension drawdown, etc. Age and gender differences prevail strongly. Defined contribution plans are likely to dominate in global pension model in the years to come. Individuals are ready to own their risk but have little control and knowledge to cover themselves. Frequent timely and prompt advice or counseling from investment advisors will enable participants to understand the need, identify suitable options and schemes, and provide themselves with sustainable long-term savings. This should convert willingness to participate to real participation. Keywords: Financial literacy, Pension knowledge, Defined contribution pension plans (DCP), irrational decision making, demographics.

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Book Review: Personal Finance: An Encyclopedia of Modern Money Management

Reference & User Services Quarterly ◽

10.5860/rusq.55n1.76 ◽

2015 ◽

Vol 55 (1) ◽

pp. 76

Author(s):

Caroline Geck

Keyword(s):

Financial Literacy ◽

Personal Finance ◽

Money Management ◽

Life Stages ◽

Investment Portfolio ◽

Financial Decisions ◽

Personal Finances ◽

Key Events ◽

First Time

This single-volume reference offers access to overviews of financial ideas and concepts, key events, and business figures that have shaped modern personal finance and money management. The editor, Barbara Friedberg, the author of How to Get Rich: Without Winning the Lottery and Invest and Beat the Pros—Create and Manage a Successful Investment Portfolio and founder of the popular website BarbaraFriedbergPersonalFinance.com, has compiled an invaluable and easy-to-use reference to increase financial literacy and independence among American citizens across different age brackets and life stages, especially young adults who are handling personal finances and making financial decisions for the first time.

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Moderating Effect of Risk Perception on Financial Knowledge, Literacy and Investment Decision

American International Journal of Economics and Finance Research ◽

10.46545/aijefr.v1i1.158 ◽

2019 ◽

pp. 34-44

Keyword(s):

Risk Perception ◽

Financial Literacy ◽

Investment Decision ◽

Investment Decisions ◽

Moderating Effect ◽

Partial Least Square ◽

Least Square ◽

Financial Knowledge ◽

Wealth Accumulation ◽

Financial Decisions

Financially unsophisticated investors who consistently make sub-optimal financial decisions may suffer lasting consequences for long-term wealth accumulation and welfare. This study examines moderating effect of risk perception on financial knowledge, literacy and investment decision. Data was collected from 378 investors through the aids of structured questionnaires. The research hypotheses were tested using partial Least-square (PLS) regression. The findings reveals that there is positive and significant effect between financial knowledge, risk perception and investment decisions, while positive but insignificant effect was found between financial literacy and investment decisions. However, risk perception moderates the effect of financial literacy, investment knowledge on investment decisions. It recommends that investors, policymakers and individuals investors should embark on various educational programmes, to further influence the level of their investment decisions before committing their hard earning fund into project.

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An Evidence-Based Personal Finance Education Curriculum for Physicians and Medical Students

10.21203/rs.3.rs-395042/v1 ◽

2021 ◽

Author(s):

Joel Akachukwu Igu ◽

Sammy Zakaria ◽

Yuval Bar-Or

Keyword(s):

Medical Students ◽

Financial Literacy ◽

The United States ◽

Personal Finance ◽

Future Research ◽

Financial Decisions ◽

Personal Finance Education ◽

Meta Analyses ◽

The Impact ◽

Finance Education

Abstract BackgroundMany physicians complete medical school and graduate medical education (GME) burdened by high debt and financial illiteracy. This places them at higher risk for ill-informed financial decisions, which can result in increased stress and anxiety and a lower quality of life. In response, medical wellness programs have increasingly sought to offer personal finance education, but there is little guidance on optimal curricula. Our objective is to systematically review the existing literature examining physician financial literacy curricula and to recommend a standardized curriculum.MethodsThis review utilized the Preferred Reporting Items for Systematic reviews and Meta-Analyses (PRISMA) 2009 checklist to conduct literature searches in PubMed, ERIC, MedEdPortal, EBSCO, JSTOR, and Google Scholar. Three researchers used predetermined inclusion and exclusion criteria to select articles, including a focus on financial concepts applicable in the United States. Articles were assessed using modified Côté-Turgeon and Kirkpatrick qualitative analyses tools. Results38 articles met all inclusion criteria. Six specifically described personal finance literacy curricula for medical students or GME trainees, with varied criteria for selecting instructors, topics, and outcomes. All studies reported that audiences were ill-prepared for making financial decisions but strongly desired financial literacy education. Qualitative analysis revealed Strength of Findings summary scores ranging from 2-4, while applicable Kirkpatrick Model scores were all 3 or greater.ConclusionsAlthough medical students and GME trainees value financial literacy, few publications report the impact of actual curricula. These efforts vary in depth, breadth, and measured impact. Future research should focus on development of valid testing instruments, content standardization, selection of credible instructors, and country-specific financial concepts.

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Personal Finances in the Era of Modern Technological Solutions

Finanse i Prawo Finansowe ◽

10.18778/2391-6478.1.29.09 ◽

2021 ◽

Vol 1 (29) ◽

pp. 155-174

Author(s):

Anna Janina Warchewska ◽

Alfred Janc ◽

Rafał Iwański

Keyword(s):

Financial Literacy ◽

Financial Services ◽

Financial Management ◽

Financial Education ◽

Personal Finance ◽

Financial Industry ◽

Financial Decisions ◽

Finance Management ◽

Self Confidence ◽

The Impact

The purpose of the article: the aim of the article is to present the essence of personal finance management using modern financial technologies. The paper seeks to answer the question of the impact financial literacy and the growth of the fintech solutions have on personal financial management. Methodology: the analysis leads to an answer to the question of which determinants have an impact on consumers' financial decisions and what remote tools the market offers. The paper hypothesizes that the intensification of educational activities tailored to each age group by institutions offering financial services may influence the greater use of modern tools in the process of personal finance management. Theoretical considerations are based on an in-depth query of literature on the subject. Research and financial experimentation in the field of financial knowledge and skills are presented. The secondary empirical material is used to analyze the development of the FinTech industry. Results: The effectiveness of financial education is observed only in specific financial behaviors. The financial industry is shaped by recipients, who instead of financial education, look e.g. financial coaching for a specific problem at different stages of their lives. Changes in population structure (aging population) and a large group of customers from disadvantaged groups (e. i. seniors, disabled people) require the development of new, matched strategies by banks and financial services providers. Too much self-confidence and a low level of consumer knowledge of cybersecurity is becoming a challenge for modern financial technologies.

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