The qualities that make women great investors
Times are changing when it comes to women and finance. There are now more female business owners and women in high-powered positions — even the number of female investors is growing, too. While figures reveal that women are showing more interest in investing and taking control of their finances, there’s still room for improvement. Investing continues to be a male-dominated world, with women investing 40 per cent less than men. With a number of qualities to suggest women make great investors, it’s evident that this statistic needs to change.
Here are some of the reasons why more women should consider investing.
They focus on long-term goals
For a lot of women, investing is a way to improve financial security. Investment methods like property investment are commonly used to help people grow their retirement funds through both rental income and returns from capital growth later in life. There are also apps such as fineco uk that you can use to trade in the stock market. Being an app, you can easily use this at any time and have access your stocks in less than 30 seconds. This means that female investors may be more likely to hold onto investments, creating logical and thought-out exit strategies to make sure they’re getting the most out of the investment.
This is supported by recent research from property investment company, RW Invest. A study conducted at the end of 2018 found that more women had shown an interest in property investment during 2018, with a 78 per cent rise in female investors from September to October and a year-on-year increase of 172 per cent. Since property investment is one of the best ways to ensure a financially secure future, this rise in female investors suggests that more women are recognising the potential that comes with such investments. They possess exceptional qualities that make them great investors, and understanding how does inflation impact the stock market can further enhance their financial acumen.
They avoid risk
While men can sometimes be impulsive and rush into investments without adequate research, women tend to be more careful when it comes to their money. The majority of female investors spread their risk by investing in a diverse portfolio of assets, rather than just ‘putting all their eggs in one basket’.
This aversion to risk is, unfortunately, a trait that puts a lot of women off investing. Some women will have no problem with saving an amount of their income each month, but when it comes to investing this money, they worry that they could lose it all. By looking past this, however, women can use this cautiousness to their advantage, conducting more in-depth research to source the investments with the most potential.
They have more patience
One trait that’s crucial for investors to have is patience. Investments may take some time to get going, and it can take a while until the investor sees positive results. For instance, if you purchase an off-plan property that’s not been completed yet, you’ll have to wait until the development is finalised before you can look for tenants. This means that you can potentially lose out on months of rental income depending on the length of time the development takes. However, once complete, the benefits are likely to far outweigh this downside. Stereotypical as it is, women tend to have a more patient nature, which can make them more comfortable with ‘riding the wave’ of investments and waiting patiently for growth.
*Collaborative post