Younger Generations’ Investing Behaviors in Mutual
Funds: Does Gender Matter?

Abstract

This study aims to understand younger generations’ investing behaviors in mutual funds in order to help wealth advisors understand how better to work with younger generations. Using survey data, this study reveals that knowledge, experience, and income are important factors that influence younger generations’ investing behaviors in mutual funds. Moreover,gender emerges as the most important factor that differentiates younger generations’ investing behaviors in mutual funds. The findings point out challenges for younger women’s wealth management, as they tend to exhibit fewer investing behaviors in mutual funds than their counterparts do. Consistent with previous research on wealth management among older generations, gender differences have significant implications for wealth advisors. As a result, wealth advisors should help younger women enhance their wealth management and financial future by facilitating their acquisition of necessary financial knowledge and experiences and their involvement with their wealth management. Wealth advisors are also urged to consider helping their clients manage their wealth by being aware of gender-predicted differences in client situations.

TOPICS: Wealth management, mutual funds/passive investing/indexing