December 17, 2017

Are women better investors than men?

Family-Divorce-535x338

When it comes to financial investment decisions, gender plays a more critical role than many people realize. This is because women tend to have the bigger picture in mind and do not invest before either researching or seeking additional help. This is in sharp contrast to men who tend to have short term investment goals in mind.

The following are reasons why women may appear to be better investors than men:

Men seem more competitive

In many cases, the most important thing to men is not the absolute return on investment but competing with rivals. Hence they may end up making riskier bets which are less likely to pay off in investments.

Men like showing off their returns, thus are less likely to consider any advice or seek a second opinion. This portrays decision making weaknesses in men resulting in focus on short term goals. They lose vision of the real objectives of investing and producing consistent returns on investments over a period of time.

Women take fewer risk than men

Women tend to gravitate towards safe investments and hold stock that seem less volatile to unworthy investments.

Men are prone to become angry when things fail while women take actions to secure the situation. This anger in men may lead to actions that compound losses while women are likely to avoid market drops. They would also take measures that will curb any further loss therefore reducing disasters in future.

Women research more than men

Women tend to research more than men because they have an urge to be in control and investigate the risks they may be involved in.

Women have more realistic ideas than men about their investment. This is because they have lower expectations on the new investment than men. Due to their realistic ideas, they become committed to their investment hence more returns.

Women realize they don’t have control

Surveys have indicated that women are likely to relate their success to fate or factors outside themselves. This makes them aim for control to give them perspective instead of panicking.

Women look out for a possibility of the next storm. This enables them to prepare for any risk in the event of one happening therefore making them better investors.

Related posts