One such idea is that women are not as good as men at investing money. Yet studies show that women consistently outperform men in managing and investing money – both as regular individuals and as financial professionals, and during good markets and bad.
More recent studies have confirmed the trend. According to research by Fidelity Investments, based on reviewing eight million investment accounts, women save 40 per cent more than men and their investments perform better on an annual basis. Yet in a
Among financial professionals whose job it is to outperform the markets using complicated investment strategies,
Financial outperformance also extends to uneducated women in developing countries who are
What is it about women’s financial abilities that is often overlooked? And how can we learn to “invest like a woman” to improve our own investment returns?
Confidence is good – overconfidence, not so much
Women tend to be less confident as investors. While a total lack of confidence can be paralyzing, being overly confident is also a hazard. Men report feeling more confident in their abilities — even when
Swinging for the fences
Unlike many men who are interested in achieving outsize gains from their investments, women primarily invest to reach life and financial goals. Therefore,
The female brain
Could women’s neural functioning contribute to their investing success? Some scientists postulate that women’s superior abilities in pattern recognition give them the edge in what is sometimes referred to as “women’s intuition.” All investors could benefit by stepping back to look at the big picture to discern trends.
“Let’s agree to disagree”
Women tend to be contrarian investors who are more skeptical about “hot stocks” and “sure bets” than men are, and therefore are less likely to incur permanent capital loss; a fancy way of saying “losing your shirt.”
Back to the future
Women’s investing prowess is not only a recent phenomenon. Based on ethnographic studies, women have historically over-contributed to the family’s welfare. Images of men hunting large beasts to feed the tribe are dramatic, yet incorrect.
Isn’t it time we discarded limiting stereotypes about women’s financial aptitudes? Study after study shows that it just doesn’t add up.
Rita Silvan, CIM™, is personal finance and investment writer and editor. She is the former editor-in-chief of ELLE Canada magazine and is an award-winning journalist and tv media personality. Rita is the editor-in-chief of
Golden Girl Finance, an online magazine focusing on women’s financial success. When not writing about all things financial, Rita explores Toronto’s parks with her standard poodle.