Do Women Make Better Investors Than Men?
This is an age old debate for which there is no convincing answer. Do women make better investors than men? Finance has always been regarded as a male dominated profession, especially at the top. But along the way….Many women have shown themselves to be more than capable of handling businesses and also become great investors. But…..do women have the capability and skill to invest in stocks and equity mutual funds? Yes…they do. Many women are far better investors in stocks than men. You must be wondering why?
It’s because of a 3 letter word called EGO. You and other men will never accept defeat when it comes to stocks. Selling stocks at a loss is an admission of defeat. Just imagine telling your friends you have suffered a loss in the stock markets? Won’t they laugh and make fun of you? Better hold on to these stocks even though you know they are absolutely useless. Forget the money….You still enjoy the boosting rights….
Women on the other hand are less sure of themselves and are never overconfident while investing in stocks. If they do make money in stocks, they attribute it to luck or fate. Women are safe investors even in the dangerous world of equity. Want to know more on investment planning? Just leave a missed call on IndianMoney.com financial education helpline 02261816111 or just post a request on IndianMoney.com website. IndianMoney.com offers Free, Unbiased and on-call financial advice on Insurance, Mutual Funds, Real Estate, Loans, Bank Accounts and Capital markets.
Do Women Make Better Investors Than Men?
1. Women are calm investors. Men are overconfident
Heard this famous saying by Benjamin Graham, “Individuals who cannot master their emotions are ill suited to profit from the investment process.” Women are masters when it comes to controlling, masking and hiding their emotions. Men love noise in the stock market. Every time the stock market goes up and down, your heart (the heart of the Indian male) misses a beat. You jump up and down and swing your hands. Oh….the price of my favorite stock has crashed. It’s the end of the World.
Women are very calm and cool investors. They ignore market noise. They buy good stocks and hold them for the long term. Warren Buffett says…. “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” Though you and other men believe you are India’s answer to Warren Buffett….It’s the women who actually follow him.
Women are very patient and can easily handle stress making them great investors.
2. Women chase goals. Men chase returns
Women are very disciplined when it comes to investments. They chase goals and not returns. Women are very conscious of their financial goals and invest wisely and with a lot of discipline to achieve them. They will not chase any stocks or take unnecessary risks in their investments.
Women are not interested in chasing returns….They are only interested in achieving their financial goals. This is how you (The Indian Woman), may invest to achieve financial goals.
- SIP in an equity mutual fund for son’s education.
- Investment in PPF for daughter’s marriage.
Women are very careful investors. They rarely invest on impulse. They always do their research before investing hard earned money.
3. Men and Women can learn investing from each other
When it comes to investing, there is a lot women can learn from men. You….the Indian woman…love to dump the responsibility of managing and handling money on your spouse. This has to stop. You have to involve in the family finances.
Many Women who are good in managing money and making financial decisions, do not care to involve in financial matters after marriage. This is very bad. Women have good knowledge of the family (emotional connect), which helps them make better financial decisions and better investments.
It is the duty of you (the man of the house), to involve your wife in family financial matters, even though she may be averse to doing so. Your wife must learn how to manage finances and investments. You never know when this knowledge might be useful. Women are naturals when it comes to making a budget. Make sure your wife does the family budgeting.
Yes…. All you need to do is learn how to invest and do your research before investing. The rules of smart investing remain same for both men and women. Both men and women are very good investors. They just need to upgrade their skills. Warren Buffett says…Risk comes from not knowing what you’re doing. Knowledge empowers you and drives away risk. Be Wise, Get Rich.