Women and Investing
A recent survey found that while women and men were equally knowledgeable about investing, female investors more often lacked confidence in that knowledge. It also found that women are less willing to take investment risks and that female investors found financial jargon off-putting more frequently than their male counterparts.
But risk-aversion may not be a bad thing. Other research found that female investors outperformed males by 0.81% on average over 3 years. The were several underlying reasons for this:
Women are more likely to have naturally diverse portfolios, even small investments were split several ways
Women tend to hold less risky investments (and so were less likely to suffer a loss)
Women are more likely to buy and hold (meaning they incur fewer trading costs)
Women are more likely to invest through an ISA (and so benefiting from the tax advantages ISAs provide)
A lack of confidence and concerns over loss of capital may be needless barriers to investing, issues that can be eased by talking to a trusted advisor.Back To List