Are Women Better Investors?
October 15, 2020
Women are unquestionably the better investors. Why is that so?
Mitigation of risk is an important facet of the investment business, so a better investor is the one
who loses less money in comparison, even if they make less profit as well. And women seem to have
won this round. Let us take a look at the qualities and characteristics that make women better
Women analyse the pros and cons first.
Women are inherently more risk conscious and think not twice, but multiple times before making
any major decisions. They prefer to retain money and stay away from risky investments if possible.
Surveys show that only a small fraction of women worldwide invest in the stock market, and those
who do are more cautious and risk conscious than the men who are their competitors.
Women Love Saving Cash and Believe in Secure Investments.
Each woman is different in her own way, with interests ranging from gardening in her backyard to
travelling the world, but the one thing they all have in common is a predilection towards saving
money. Hence, women tend to go for secure solutions like buying gold which assures a long-term
and steady growth and prefer cash portfolios over stock portfolios.
Women Save for a Purpose.
Women love saving cash, because they understand the importance of money in our society. They
save for a purpose, for a goal they hope to accomplish. While they recognize that money can’t buy
you happiness, they also point out that it can buy things that can ultimately make you happy.
Women Invest in Only What They Understand.
Women simply don’t invest in things they don’t understand, which takes a lot of courage when
you’re usually forced to keep up with the crowd. In fact, around 50 % of UAE women don’t know
about the stock market, while it is only 27 % of the male population of UAE that are ignorant of the
inner workings of the stock market.
Women Prefer Consistency; They Are Committed.
My female clients say they like to keep it simple so that they can make more assured commitments.
Simplicity and lucidity in all things help them stay committed to a cause and see it through to the
end. Women create goals and stick to them till they’re no longer goals but milestones; they like to
stay committed to a plan till it is achieved.
Gambling is Predominantly a Male Addiction.
One of the factors that make women better investors is the fact that they’re not the biggest fans of
gambling. While most men who invest in stocks prefer to make more money even while the risk is
higher. So, while they might strike gold, there is also a good chance that the cards may not be in
their favour. This risk of huge losses does not stop men from investing anyway, but a woman prefers
to play her cards right.
In conclusion, although women do invest, sometimes in mind-blowing magnitudes, they stay true to
their character and do so only after ensuring that the proper steps have been taken to mitigate risks
and keep their investment secure. They like to play it safe and are consistent in their endeavours,
come hail or storm.
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