While women are sometimes considered to be more reluctant to invest than their male counterparts, when they do invest, they tend to outperform males and often get a greater overall return. Interestingly, this initial perceived reluctance often works in the women investor’s favor. Read on to learn a few of the reasons women are considered more savvy investors.
Women Buy and Sell Stock Less Frequently Than Men
One reason that women may experience better returns than their male counterparts is the fact that they move their money around less often than men. By being more conservative with their trading frequency, they follow the traditional "buy and hold" strategy, which is generally more effective at getting long-term returns.¹
Women More Often Seek Out and Take Investing Advice
Women tend to be more trusting and open to collaboration than men. If they are unsure of an investment or strategy, they will seek advice instead of being overconfident and jumping right in. Women prefer to make more informed and calculated decisions when it comes to investing, which causes them to seek professional advice and perform more detailed research before making their investment decisions.²
Women Focus More on Portfolio Balance
A good mix in your investment portfolio is necessary to work toward long-term financial goals. Since women are more cautious and risk-averse when investing, they often have a more balanced portfolio than men. Their portfolios often combine a balance of cash, bonds, and stocks with balanced risk and reward potential. Men will more often have stock-heavy portfolios that are more subject to volatility.¹
Women Will Stick to Their Original Plan
Women are more likely to keep emotion out of investing. They will work with a financial professional or other trusted advisor and develop a well-thought-out investment plan. They are also more likely to stick with their original plan than men. Women tend to be calmer than men through market volatility and will trust in their original plan instead of feeling the need to move around money.¹
Women Are More Curious, Which Helps Them With Investment Strategies
Women want to learn more about the ins and outs of investing and various investment strategies. By taking the time to learn how various investments work and what the potential risks and returns are for them, they are more able to make confident and well-informed decisions.²
Whether it is due to a greater curiosity about investing, a more cautious approach, or their trust in their financial professional, women are solid investors who may seek to increase their wealth by stepping out of their comfort zone and becoming more comfortable investing.
The financial consultants at Travis Financial Services are registered representatives with, and securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA / SIPC). Insurance products are offered through LPL or its licensed affiliates. Travis Credit Union and Travis Financial Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Travis Financial Services, and may also be employees of Travis Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Travis Credit Union or Travis Financial Services. Securities and insurance offered through LPL or its affiliates are:
|
Not Insured by NCUA or any other Government Agency
|
Not Credit Union Guaranteed
|
Not Credit Union Deposits or Obligations
|
May Lose Value
|
The LPL Financial registered representatives associated with this website may discuss and/or transact business only with the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.
The "Contact TFS" and "Login to Your Account" links are provided as a convenient connection between the websites belonging to Travis Credit Union and its business partner. The policies and procedures in use at our business partner may differ from those in use at Travis Credit Union. Travis Credit Union is not responsible for the content contained in our business partner website.