What Makes Women Better Investors?

In the investing game, women are often considered less capable than men. But is this really the case? Fidelity' 2021 Women and Investing Survey found women outperforming men by 40 basis points, which translates into significant wealth creation. There are compelling reasons as to what makes women better investors.

Inherent Qualities

When it comes to investing, women have some inherent qualities. First, they tend to be more patient, waiting for the perfect opportunity to buy or sell rather than acting on impulse. Second, women are often better at researching and gathering information before making a decision. This gives them a clearer understanding of the risks and rewards and helps them make more informed choices.

Finally, women tend to be less emotional about their investments, which means they’re less likely to make hasty decisions that can lead to losses. All these qualities make women ideal investors, and it’s no wonder that more and more women are taking advantage of the opportunities in the investing world.

Adopt a Long Term Approach

Women generally tend to take a long-term view in investing. Studies have shown that women are more likely than men to invest in companies focusing on sustainability and social responsibility. They are also more likely to remain committed to their investments for the long haul, even during market volatility. This patience can pay off in the form of higher returns over time.

In addition, women are often better at risk management than men, meaning that they are less likely to make reckless decisions that can lead to losses. As a result, investing like a woman can be a smart way to build wealth over the long term.

Better Savers

Women have long been known to be better savers. This is because they are more likely to think about and plan for the future. This habit of saving helps them when it comes to investing. When women invest, they are more likely to think about the long term and how their investment will grow over time.

This leads to them making better investment decisions and getting better returns. So, not only do women save more, but their saving habits also help them get better returns on their investments.

More Disciplined

Investing isn't always easy– there will be ups and downs regardless of how smart or experienced you are. That's why it's important to stay disciplined with your investment strategy, even when times are tough. Several studies have found that women are less likely to sell off their investments at the first sign of trouble, which means they're more likely to weather market downturns and come out ahead in the end.

Overall, there are many reasons to believe that women make better investors than men. From being more risk-averse and patient to staying disciplined during market downturns, women have proven repeatedly that they have what it takes to be successful investors.

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Data Sources: https://www.cnbc.com/2022/04/11/op-ed-heres-why-women-are-better-investors-than-men.html