UOB’s Tan noted that increasingly, more women are taking a proactive approach towards building their wealth and financial planning, with the rise of online platforms.
SINGAPORE: During the Covid-19 pandemic, Rachel, 34, made one of the most uncharacteristic financial moves in her life: She started trading and investing in cryptocurrency.
Yet she claims to be a risk-averse investor. So why did she take the plunge when introduced to a cryptocurrency trading platform by a friend?
“Out of boredom,” said the real estate agent, who asked that we not use her real name as she does not want clients to know about her investments.
“I decided to invest based on his advice and set aside a budget of US$5,000 (RM22,390) simply to ‘play around’ with the trading app and various cryptocurrencies.”
But “playing around” does not mean reckless. Rachel is like most women investors in Singapore. “I made sure that I practised self-discipline. I only put in money that I was okay with losing, and the moment I broke even, I cashed out.”
The latest UOB Asean Consumer Sentiment study, conducted in June 2022, found that men put more of their money in securities (such as stocks and bonds), funds and digital currencies over the past six months compared with women.
The study surveyed more than 3,500 consumers between the ages of 18 and 65 from five Asean countries, including Singapore.
Jacquelyn Tan, head of group personal financial services, UOB, said: “When making financial decisions, women tend to become more risk-alert and prefer to review their options and have the right information before coming to a decision.”
In UOB alone, 64% of its fixed-deposit accounts (which are low-risk financial instruments that provide a higher interest rate than regular savings accounts) are held by women; men hold 36%.
The bank’s numbers also indicate that it has a larger female customer base for unit trusts (which pools investors’ money and are managed by a fund manager) at 57% as at January 2023.
Experts said there is nothing wrong with being prudent in taking risks. But access to credible information on investment trends and products can help to further empower women as they work towards financial security and their greater financial aspirations, said Tan.
This will give them the assurance they need to help them make well-informed investment decisions, she added.
Rachel, who is single, agrees. About 75% of her investments are in property, she said. “Due to my work as a real estate agent, this is an investment product that I am proficient in. So I’m much more comfortable in (investing and taking risks) in this area.”
At the age of 21, Rachel, who was then working in the advertising industry, invested in her first property – a one-bedroom plus study condominium unit – with support and guidance from her family.
She explained: “My relatives were very active in property investments. Growing up, I saw first-hand how they make money from it.
“Along the way, they influenced and taught me the ropes for a start, and even helped me kickstart my property investment journey through financial support.”
Years later, she grew so confident in property that she decided to make a career switch. “Now, armed with knowledge I gained from my job, I am able to employ a much more research-driven approach,” she said.
Even as property prices were rising last year, she bought a one-bedroom condominium unit, her second property investment.
UOB’s Tan noted that increasingly, more women are taking a proactive approach towards building their wealth and financial planning, with the rise of online platforms.
The bank has digital solutions to help customers reach their financial goals.
When interest rates spiked in the second half of 2022, the bank saw a higher number of female customers taking up new fixed-deposit accounts or placing their money in Singapore Government Securities like Singapore Savings Bonds (SSBs) or treasury bills.
They’re also more willing to invest for the future. “In 2022, we saw a 212% year-on-year increase in the number of female customers opening new supplementary retirement scheme accounts, compared with the year before.”
For male customers, the year-on-year growth was 152%.
Jasmine Chye, 34, who is a digital marketing manager in the hospitality industry, has portions of her investments in SSBs, fixed-deposit accounts and exchange-traded funds (ETFs).Chye came across online resources in 2017 that shared about how easy it was to kick-start investments in ETFs (investment funds that track the performance of a specific index), and that encouraged her to give it a try.
“Compared to investment products like properties, the barrier to entry for ETFs is relatively low.” — The Straits Times/ANN
