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Trading in financial markets involves significant risk of loss which can exceed deposits and may not be suitable for all investors.
Before trading, please ensure that you fully understand the risks involved
Trading in financial markets involves significant risk of loss which can exceed deposits and may not be suitable for all investors. Before trading, please ensure that you fully understand the risks involved

Tuesday, March 07, 2023

Women's secret sauce for success with investments

By Century Financial in Blog

Women's secret sauce for success with investments
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:

Not taking retirement planning seriously -

Women tend to outlive men, making it crucial for the gender to meaningfully plan their retirement.

Extreme risk aversion -

Women are often more risk-averse than men, which can be good when investing. However, excessive risk aversion can prevent women from taking advantage of investment opportunities that could help them grow their wealth over the long term.

Letting someone else manage their investments -

Seeking advice from financial professionals must not be confused with letting someone else take control of investments. Women should closely watch and have an account of their investments, on their fingertips.

Sticking to conventional options like Gold or fixed deposit savings –

Physical gold investments can be a part of a diversified portfolio but must not be the only focus in the investment portfolio. Also, savings accounts do not work a long way in building wealth over the long term. Hence, a balance between short-term and long-term options could help female investors create a healthy mix of investment instruments.

5 Must Do’s for female investors:

Disciplined investing with confidence:

Being confident and not allowing fear – or fearmongers – would help women in their investing journey.

Use demo account:

Any investor gains confidence with experience, which is nothing different regarding women. Hence, using a demo trading account before bringing real money into the arena is always better.

Know your risk appetite:

Keeping a mid-way between extreme risk averseness and extreme risk tolerance would aid women better plan their asset allocation.

Many investment options:

T-bonds can either be purchased by an individual or through an investment vehicle like mutual funds and exchange-traded funds.

Keep Learning, Keep Growing:

Keep a tab on Century Financial website’s Learn to Trade section, to gain advantage of research, investment insights, and blogs to expand your knowledge pool.


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.

By choosing suitable investment options and avoiding common mistakes, women can become successful investors and take control of their financial future.

Disclaimer: Century Financial Consultancy LLC (“CFC”) is Limited Liability Company incorporated under the Laws of UAE and is duly licensed and regulated by the Emirates Securities and Commodities Authority of UAE (SCA). This document is a marketing material and is for informational purposes only and must not be construed to be an advice to invest or otherwise in any investment or financial product. CFC does not guarantee as to adequacy, accuracy, completeness or reliability of any information or data contained herein and under no circumstances whatsoever none of such information or data be construed as an advice or trading strategy or recommendation to deal (Buy/Sell) in any investment or financial product. CFC is not responsible or liable for any result, gain or loss, based on this information, in whole or in part. Please carefully read full disclosure mentioned on the website.