How women can become better investors?

Nutan Gupta

01 Jun 2017

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.


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mutual-fund

Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

Another advantage of mutual funds is that you don’t need to invest large sums of money. Buying equities for a profitable venture needs huge amounts of money, a minimum of few lakhs. With mutual funds, you can start with Rs.1000 and earn profits on that as well.

Convenience

Keeping an eye on the markets everyday is a time-consuming business, especially if you are investing as a side gig. There are people who spend their lives studying the market and still end up sustaining heavy losses. Though investing in mutual funds does not guarantee high returns, it is stress-free and needs less work as compared to investing in equities.

To sum it up

It is important to remember that mutual funds have their own disadvantages as well. Thus, as with any financial decision, educating yourself and understanding the suitability of all the available options is the ideal way to invest. 


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How women can become better investors?

Nutan Gupta

01 Jun 2017

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.