By : Emily Moore
Many women fear investing. It’s a playing field that was originally played by a male team. Why is this the case? 73% of Women don’t believe they can accumulate 1 million in savings. But only 56% of men believe they can’t (Newsroom). However, women actually possess the skills and ‘temperament’ that makes investors succeed. Female investors are frequently more successful than male investors and while women shouldn’t lack the confidence to invest, being overconfident is harmful in investing anyway. That is why women shouldn’t let their lack of faith in their investing abilities hold them back.
Since women aren’t as sure of themselves and their investing strategies, they ask more questions. Women will admit what they don’t know. And women have less extreme investing styles. In fact, these calmer investing techniques helped women during the 2008 financial crisis. A study done by Hedge Fund Research, Inc. showed that women-managed funds experienced a drop of 9.61% compared to a 19.03% drop for men.
It can appropriately be declared that women need to let go of their hesitant investing nature and start right away. Young women are increasingly succeeding in their occupations out of college, making it the perfect time to start investing. A study done with 1400 women by GH showed that women in their 20’s use 56% of their earnings for essentials, leaving 44% to savings and disposable income. This leaves plenty of room for women to set aside small portions for investing, and suggests their younger age makes it the best time to start. As women get older they will need to spend more on essentials and have less time to make returns on the investment.
Women must take advantage of the opportunities investing can offer seeing as they are beyond capable of success. Beginning sooner rather than later will prove to be beneficial and a lack of confidence or certainty is not a barrier, in fact let it be a push to ask questions, seek advice, and do research. Warwick Business School conducted research on people who use Barclay’s Smart Investor Service and saw that the return made by women on the site is 1.94% above the FTSE 100 index while for men it was 0.14%. These statistics stress that investing success is not a masculine strength.
It’s time for young women to dominate the field as well.