In most households it tends to be men who make the investment decisions. But, as ROBIN POWELL explains in this article for SCM Direct, women often make better investors. Knowing these five things will help to give women the confidence they say they lack.
Let’s face it, investing is considered a “man thing”. The investment industry is predominantly male, and in most households it’s the man who makes the investment decisions. But have you ever stopped to wonder whether men are really any better at investing than women?
A new study by the fund management company, Fidelity, shows that over a ten-year period, its female customers earned, on average, 0.4% more per year than their male counterparts. That may not seem like a big deal, but when that figure is compounded over a few decades, it can add up to a huge difference.
A recent study by Forbes showed 23% men are investing in the stock market more since Covid-19 compared to only 10% of women, and that women tend to be more cautious. SCM Direct, which has 39% female clients (higher than many competitors), has found that their female investors tend to be more long-term, willing to diversity and are more open to balancing costs, risk and returns, rather than just being obsessed with performance.
ROBIN POWELL is the founding editor of The Evidence-Based Investor. He works as a journalist and consultant specialising in finance and investing, and as a campaigner for a fairer, more transparent asset management industry. You can find him here on LinkedIn and Twitter.
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NEW INVESTOR?
If you’re new to investing, TEBI founder Robin Powell and fellow financial blogger Ben Carlson have written a book that you really ought to read. It’s called Invest Your Way to Financial Freedom, and it’s published by Harriman House.
Primarily written for a UK audience, the book has no hidden sales agenda and is based on peer-reviewed academic evidence. It explains, in simple terms, how young investors can develop good habits, save a fortune in unnecessary fees, and achieve financial freedom many years earlier than they otherwise would.
You can either buy the book direct from the publisher or via Amazon:
For those in the UK,
Buy the paperback via Harriman House here
Buy the paperback via Amazon here
Buy an audio version on Audible here
For those outside the UK,
Buy the Kindle version via Amazon here
© The Evidence-Based Investor MMXXI
Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.
