While 70 % of Czech men have experience with investing, among women it is only half of the population. Men approach investments more actively and, with the prospect of a higher profit, are willing to take on greater risk. Women, on the other hand, prefer safer investments and more often seek the advice of financial advisors. This emerges from the survey How Do Czechs Invest?, which the investment platform InvestBay commissioned through the Instant Research platform.
At a time when the central bank is lowering the base interest rate, demand for investment assets is rising. The way men and women approach and manage them differs in many respects, but at the same time we find attitudes that unite both sexes in this regard. These include a shared view of real estate. More than 60 % of women and men alike described it as a rather safe and attractive investment.
"Of all the forms of investment offered, Czechs gave real estate the highest score in terms of safety and attractiveness. Nevertheless, they also see a problem in the fact that they do not have enough of their own funds for these investments – this is a barrier that is limiting for 72 % of respondents," comments Daniel Rajnoch, founder and CEO of the investment platform InvestBay.
No risk, no reward? Women see it differently than men. There are also differences in their ideas about an investment portfolio
Roughly a third of men and a fifth of women in the Czech Republic invest once a month. Women and men alike described cryptocurrencies as a rather unattractive and risky investment. While men will readily take a risk if it carries with it a greater probability of a higher return (20.7 % of men vs. 7.5 % of women), in more cases women will settle for a lower return with less risk (37.9 % of women vs. 25.1 % of men).
Over 40 % of the women surveyed also stated that they need the services of a financial advisor in order to invest; the figure for men was almost 10 % lower. Related to this is the question of a properly set-up investment portfolio: 36 % of men think they know what a suitably diversified portfolio should look like. Women think so in only 22 % of cases.
Micro-investments are an opportunity for everyone. Regardless of their informational or financial
capital
The survey also shows that, compared with men, women are held back from investing by a lack of information and a fear of losing money. In such a case, so-called micro-investments can be the ideal solution. "Micro-investments allow even small investors to safely and advantageously grow their spare funds. They offer stability and accessibility without the need for large financial deposits. Investors can start with amounts in the order of thousands of crowns and gradually increase their share," explains Daniel Rajnoch.
The ideal option is then micro-investments in real estate. Compared with stocks or cryptocurrencies, the value of real estate does not fluctuate as significantly over time and is more resilient to short-term sharp market swings. "Of course, this does not apply to all properties. You need to take into account factors such as the location, the potential for use or the subsequent management of the building, and choose the right combination of these factors. In addition to increasing the capital value of the properties, however, another advantage is the rental income itself. What's more, micro-investments in real estate do not require special expertise, knowledge or the need to devote an excessive amount of time to them," Rajnoch concludes.
Note: Data collection was carried out in April 2024 on a representative sample of 1,534 inhabitants of the Czech Republic.
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