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Culture Counts

Money-management strategies.

This story appears in the December 1997 issue of Entrepreneur. Subscribe »

According to a recent national survey of investors done by research firm Roper Starch Worldwide, culture can influence investment decisions. Conducted for Ariel Capital Management Inc., a black-owned and operated mutual fund company in Chicago, the study found that blacks invest more conservatively and expect larger returns in a shorter time period than do nonblacks. The study also found that while stock and mutual fund investments are at an all-time high, most blacks do not invest in them.

The reasons behind blacks' investment decisions may have to do with perception of risk. Black investors tend to be comfortable with a moderate amount of risk but typically don't want to tie up their money for a long time, says Stacy Bereck, senior project director with Roper Starch. And that, in turn, may affect the types of investments they make.

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