It is no secret that women and men may think differently in some way; this situation also applies in investing. The difference can easily to be seen in financial decision making, even though according to the research, women are more eminent than men in this field. So, here are some reasons that you can study and apply as yours in order to get a high return from your investment.
- Women save More
Research from Fidelity Investments showed that while men save 7.9% of their salaries, women save 8.3%. The difference may not much, but if it adds up to hundreds of dollars a year and tens of thousands over a lifetime of saving.
- Women usually focus more on longer-term, non-monetary goals
Factor that influences women and men act differently is because men tend to be more competitive and thrill-seeking by nature. Therefore men focus on the short-term track records of their portfolios while women generally associate money with security, independence and the quality of their and their families live, this also describes why they prefer to choose longer term and non-monetary goals.
- Women tend to be thorough and take more time to make decisions than men
Several studies reveal that women usually do a lot of research investment deeply, such as; having group discussion before making portfolio decisions and this often makes them take more time. Women also tend to be more patient as investors and consult their advisors before adjusting their portfolio positioning, whereas men are more liable to market timing impulses. If women prefer for having group discussions while men’s tend to be more independent learning approach before making decision.
- Women Seek Help More
In financial research, women are more receptive and advice than men. They ask more of a financial advisor’s time and resources, but once you have their trust; women are more loyal clients that usually focus on lasting relationships.
- Men tend to risk more
Female investors were less likely to indulge in what calls as “uncertain behavior”, this avoids them to dump all of their stocks and go completely into bond or vice versa. Although the majority of male investors in the study didn’t behave this way, men were nearly six times more likely than women to make this move. Men were also significantly more likely to take more risk than the platform’s algorithms advises for them.