There is a social stereotype that women are weaker in investing. Sometimes, women themselves are less confident in their abilities. However, various studies have shown that women invest better than men because they study hard and take less risks.
According to Fidelity Corporation’s 2021 Investment and Women’s Study, women are about 0.4 percent more likely to invest and earn than men. Although this number seems very small, it is an indicator that this trend will continue to increase over time. The proof is that 9% of the women participating in the study have “overtaken” men in financial investment activities.
In addition, research by STEMconnector shows that women who invest earn 12% more than men. According to the FTSE 100, the annual return on investments for men is about 0.14% but for women it is 1.94%.
Only a few figures from the last 3 years show that women are capable of investing, and they invest better than men. So, what makes women so successful in investing?
3 reasons why women invest more than men
Men and women have different strengths and weaknesses and therefore have different investment strategies. Photo: MSN
– First, when it comes to saving and investing, women usually do one way overall approach. They develop a plan – like a money-making roadmap – based on what’s important to them and their goals. Then align your investments to reach them.
– Second, they invest consistently. They do not attempt to time the market, but instead establish the investment from each paycheck. Indeed, women are safe and prudent investors. They only focus on investing in stocks that are tested, reliable, and have good returns. Before each investment, they often spend a lot of time researching before making a decision.
– And the last thing that is extremely important, is forging Practice patience and control emotions well. Women always have a long-term view. As a result, they are less likely to make impulsive, emotional moves like “pulling money in and out” of the market. What they do is they hold based on their roadmap and monetization goals. Besides, they focus on financial goals within a certain time frame, instead of enjoying the same thrill and adventure as men. As a result, women are less susceptible to market ups and downs and less likely to sell in times of uncertainty.
These 3 rules have become a success formula for many women.
Steps to consider if you want to join the investment world
According to research by Fidelity, 65% of women say they would invest more if they knew the steps to invest. Photo: USNewsMoney
– Think about goals: What is the most important to you? What goals do you make money for?
– How long will it take before you need that money? How long do you have to invest? For one- to three-year goals, you may not need to invest, but try to save with a relative interest rate. For savings you don’t need in 5, 10, 15 years or more, this is savings you can invest to grow.
– Think about what kind of investor you want to be – time, skill or will. Do you have time to learn and manage a portfolio? Do you have skills? Are you interested? That will determine which investor group you belong to.
Research also shows that 70% of women believe they need to learn more about how to pick individual stocks before they start. If women are not comfortable with picking individual stocks, there are a number of other alternatives that will help them grow their fortune through investing.
For savings you have beyond retirement and emergency funds that won’t need to be used for 5 years or more, there are three paths you can take to help that money grow to its great potential. best.
There are many online resources that you can take advantage of to learn about different investment options. There are also planning tools that help you create a portfolio of mutual funds, ETFs, and other types of investments. It’s important that they are diversified, and those planning tools can help you find the right investment combination based on your timeframe. However, you must take the time to research and continually review your portfolio from time to time.
2. Reach out to digital advisors
For those who don’t have much interest or time to do their own research and clear planning, a second option that can be considered is a digital mentor.
You answer a series of questions online at Fidelity.com. That is: When do I need the money? 5 years or 10 years? What do I need money for? What is my risk tolerance? How do I feel about going through the ups and downs of the stock market?
This digital advisor will then recommend an investment plan based on your answers and can invest your money for you, and make adjustments as needed.
3. Seek advice from financial advisors
This is always a great option as a financial advisor will work with you to develop a financial plan specific to your needs. They will go through all the goals to determine the right investment plan and can help you invest that money.
Indeed, female investors often spend a lot of time researching and collecting advice before investing. They spend more time with their mentors and maintain longer-term relationships with them.
According to GOBankingRates
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