Janine Horn, Senior Financial Planner at Momentum Financial Planning
Unpacking the reason women are rising fast in the world of investments
In the past, the investment world was seen as a male-dominated industry. But times have changed. Women are now breaking barriers and making significant strides in the investment world. This is a very healthy return on investment for women the world over.
As a woman on the financial frontlines, I can confidently say that women are not just making investment decisions but are also leading the way – driving innovation and bringing new perspectives to the investment industry.
Although our march towards equality tends to veer in the direction of similarity, women should also celebrate their strengths. We can’t objectively say that women are better investors than men, but studies have shown that female investors tend to get more consistent returns. We take a more long-term investment approach, are slightly more risk-averse, and make fewer impulsive decisions. Not to mention, women are also more likely to seek advice and do research before making rash decisions – kind of like asking for directions.
Financial empowerment is breaking free from its traditional shackles. A symphony of change resonates through the Fidelity Investments Women Investing Study 2021. Here, the voices of women rise in harmony, as they boldly own their success and claim their rightful seats at the investing table. The study revealed a striking truth: a resounding 67% of women are now investing outside of retirement.
The Fidelity study unveils a stirring truth: women investors, like masterful conductors, orchestrate a symphony of success, outshining their male counterparts. This was nurtured by the analysis of 5.2 million accounts spanning from 2011 to 2020. It is a testament to the prowess of women in the investment realm.
But let us not overlook broader data points. According to the World Health Organisation’s Health Life Expectancy report, women live longer than men. This unveils a profound truth: the investment voyage embarked upon by a woman is no mere jaunt; it is a testament of endurance and resilience.
Women, with their indomitable spirit, embrace investments with a gaze that pierces the horizon. A perspective etched in patience and grace, where the allure of quick gains is silenced by the resolute pursuit of financial aspirations.
The crescendo of data unfolds as Momentum research reveals that female investors partake in 3.2% fewer trading switches compared to their male counterparts. This data paints a portrait of distinct trading behaviours shaped by gender – a fact that we should all celebrate, and a success that we should all own.
Women need to realise that we can use our natural behaviours to our advantage. If we are truly more risk-averse, that means we should focus on gathering more research on our investments and have the courage of our convictions. In the end, our portfolio performance will do the talking.
The narrative of women powering up the investment world with financial savvy is a story of empowerment, resilience, and the harmonious symphony of progress. As women continue to reshape the investment landscape, their success resonates as a collective achievement, an inspiration for future generations, and a testament to the limitless potential of breaking barriers. When it comes to investments, this is why we should never be afraid to own our success.
ENDS
