According to a recent study by MassMutual Financial Group, only 26% of women are confident making their own financial decisions.
It’s interesting to note, then, that when it comes to investing, evidence tells us that women are better investors than they think they are. Study after study demonstrate clearly that women perform just as well, if not better than men!
A 2001 survey of investment advisors, a 2005 report by Merrill Lynch and a 2011 study by Barclays Capital and Ledbury Research all reached that same conclusion—each study compared the returns earned by men and women in portfolios individually constructed and found that women produced slightly higher returns.
According to the studies, women take fewer uncompensated risks and tend to be more focused on the end goal than they are on short-term wins. Also, women recognize their own fallibility. In other words, it’s intuitive to women that they don’t know the future.
Women tend to buy and hold, and in the long run this turns out to be a much more profitable investment strategy. Remember, the number one rule in investing is “buy low, and sell high!”
Of course, that doesn’t mean it’s the best investment strategy. Investing is a science, and it’s critical what you’re buying and holding and in what proportions, so please make sure you get good advice.
The point is, women are probably more savvy with money than they think they are!