Women's secret sauce for success with investments

Women are rising beyond the stereotypes in investing.

This International Women's Day, March 8, 2023, is themed around embracing equity and moving beyond equal opportunities.

Rightly so, in the investing world, embracing portfolio diversification and innovating in personal finance is crucial to discover more avenues.

Women taking money matters into their own hands

Women are now making strides in finance, breaking the glass ceiling, and becoming successful investors.

Gradually, the female population is embracing opportunities that help them to grow their wealth and expand their investing footprint.

Various surveys show that female investors are taking direct charge of their money matters, using online trading platforms, and investing in education to polish their money management skills.

What attributes could work in favour of female investors?

Women appear to have benefited from their disciplined approach to taking a risk, willingness to stick with a long-term investment plan, and openness to seek investment advice.

Let us highlight five traits in women that helps them become successful investors:

"Openness and willingness to learn" results in "Research-backed decisions"

Women investors do not shy away from seeking help and asking questions.

This openness and keen attitude encourage female investors to invest in financial literacy and expand their knowledge of financial market instruments. Doing due diligence works a long way in investing journey.

"Virtue of patience" boosts "Discipline in investing"

The attribute of patience helps women stick to an investment plan, follow their goals, and stay focused.

Studies show that women tend to have a more disciplined approach to investing which might have been attributed to their more robust risk-adjusted returns. For instance, Warwick Business School found that female investors were inclined to invest in fewer speculative stocks, which could work in their favour over the long term.

"Multi-tasking quality" helps them to "Diversify their portfolio"

Women have taken up various roles as mankind has evolved, from rocking the cradle to ruling the world.

This multi-tasking trait helps female investors to familiarize themselves with new investment strategies to enhance their portfolios.

Research around all possible investing instruments, be it stocks, ETFs, indices, forex, commodities, bonds, cryptos, and more, could help them gain a broader perspective on global markets; and minimize the portfolio risk.

"Thinking long-term" makes it easy to "Explore SIPs"

A sizeable cohort of women are considered a bit conservative and risk averse when it comes to investing, as they tend to think long-term, think beyond their generation, and do not buy on momentary gimmicks.

This “vision-based thought process” helps women investors to opt for SIPs to save regularly with less money and benefit from the long-term advantages of dollar-cost averaging (DCA).

“Deeper level of understanding" converts to "planning for emergency”

Women are prone towards being kinder and more compassionate than men. The deeper level of understanding that women show, makes them more likely to think about setting up an emergency fund for a rainy day.

An emergency fund is typically six months of salary, and the fund could be revisited as the standard of living evolves.

4 Mistakes that women investors must closely watch:

5 Must Do’s for female investors:

Conclusion:

Investing can be an excellent way for women to break the glass ceiling and build wealth over the long term.

Moreover, there are several traits that work in favour when it comes to women in the investing world.