Investment strategies to learn from Women


Our society has been male-dominated so far, when it comes to financial matters! With more women joining the workforce today, the world is shifting towards gender equality even in the domain of investments.

A woman may take a slightly delayed decision to invest in equities compared to a man. But that’s because she goes through each & everything in detail, she examines the risks and other aspects very carefully. Several studies have shown; “When women invest, they tend to have a better average annual return from their investments than men,” Women naturally possess all qualities for success in investing; here is what you as an investor can learn from them:

  1. Be patient investors: Women generally develop a strategy to invest and stick to it, buying and holding for the long term, rather than buying and selling reactively, or day trading. This approach requires fewer trades and so incurs fewer transactional fees, which can lead to better returns over the time.
  2. Shoot for goals: Invest with a goal or objective in mind, it can help you form a proper strategy you believe in. Having more immediate goals in mind can help investors stay focused and stick to the plan.
  3. Balanced investing approach: Women generally aim for a more diversified investment approach. The more balanced, risk-averse approach helps to preserve their portfolios in volatile market.
  4. Don’t be afraid to ask questions: Women tend to seek out information before investing. It’s a process of drilling down and understanding why & what we are investing? Before we make a move to invest.

Women have a natural tendency of organizing the available resources in a way that the wastage is minimal and the benefits are maximized. They are not only expert in getting the job done cheaper but they also understand where to put the money for better growth.

Women tend to put emotional value to their money. So when they invest, the money is being invested in well researched asset for an already-identified goal.