How women can become better investors?
01 Jun 2017
Nutan Gupta
New Page 1
Over the generations, men have tried in grasping their hold on a
majority of sectors, leaving women to what’s known as 'feminine' duties. But as is
with nature, scenarios of the 21st-century world have changed drastically. Women now find
themselves competing in par with their opposite gender in every imaginable field.
In this men dominated society, we see modern women playing with numbers
in finance. Apart from the usual competition, they face a different kind of pressure from
their colleagues/competitors of the opposite gender. Even so, women hold certain traits
that can provide them with an upper hand in the finance market. This has been repeated
proved by research conducted by Ledbury Research, Barclays Capital, and other firms. So,
if you as women are still thinking twice about your decision to invest, read this and make
an informed choice.
Women exhibit a calm, disciplined approach
Women tend to portray a calm, thoughtful approach towards investment.
They tend to avoid impulsive decisions like their male counterparts. Men might indulge in
more situational decisions. For men, a huge gain could mean a huge party; a major loss
would mean haphazard selling of stocks in the bear market. Women, on the other hand,
happen to be on the calmer side. Their disciplined and cautious approach helps them
refrain from making reckless decisions and help them take the next step wisely.
Having a research-oriented approach
A woman would do the necessary research before planning on investing
her money in any stocks/funds. She would make sure that every stock/fund she invests into
is worth her money and time. Women understand that financial news might be sensationalized
around segments. Hence, depending on her own research is what they prefer.
Patience is the virtue of the wise
Women tend to play the safe game. They are conservative in their
approach towards investment. Buying and holding are the
key virtues of investing. Though it may not be
applicable always, when it comes to it, women know exactly how it's done. This
conservatism of buying and holding in right proportions help them achieve long-term
targets.
Target-oriented approach
The divide between being goal-oriented and returns-oriented splits the
factions of women and men. A woman would set a target and pursue it with all her heart and
mind. They take relatively fewer risks than their male counterparts. This helps them be
mindful of their competence, and navigate themselves even under risky market conditions.
Taking calculated risks
Psychological rift plays a bigger part in helping women do well in the
finance market. The vociferous attitude that pertains to men makes them want to take bold
decisions. A woman would keep it to herself, play it safe and gleam at every stock that
pays out sufficient returns to her.
Things to keep in mind if you are a women investor
-
Do a fairly good amount of research before deciding to invest or not
invest in something
-
Ensure that you don’t take every financial advice on your way.
What works for others might not work for you
-
Plan your investment strategy keeping your goals in mind
-
Take risks when you are confident of the consequences and can handle
it
-
Trust your instincts. If you believe in it, it is more likely to pay
off, than when you don’t
Final Word:
As much as these are encouraging for women, one thing they have to
realize is there is a lot to learn from male investors as well. Understanding, learning
and acquiring the positive traits from both the sexes is the true way of excelling the
finance market.