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The Importance of Investing for Women
Why women should invest?
Plenty of articles have been written bemoaning the fact that women are
less likely to invest in the stock market than men. However, several
recent studies suggest that women who do take the plunge outperform men
when it comes to investment returns. So what is the evidence — and what
exactly are female investors doing to gain the edge over men? Warwick
Business School conducted a study of 2,800 UK men and women investing
with Barclays’ Smart Investor, tracking their performance over three
years. Not only did the women that were examined outperform the FTSE 100
over the time period, they also achieved better returns than their male
counterparts.
Here are how women who do invest are winning the battle of the sexes:
Women investors tend to be less likely to make risky financial decisions
than men. The global BlackRock Investor Pulse survey shows that 72 per
cent of women rejected investments in “riskier” equities, bonds or real
estate, as opposed to 59 per cent of men.
“Slow and steady wins the race” sums up the investment approach of many
women. The Warwick study found women were more likely to invest in funds
with a consistent record rather than opt for the volatility of
individual stocks.
Women have a more long-term investment perspective than men. Moreover,
male investors are likely to rack up more trading costs than women,
which can erode returns over time.