Women are more likely to follow tried and tested investing principles, while men often think they know better. This revelation comes from a recent study released by Fidelity Investments at the start of Women’s History Month.
The study found that financial stress levels were consistently high among women, regardless of their total household income. However, it also revealed that taking action made the biggest difference in reducing this stress, with women who made financial moves in the past six months reporting lower stress levels.
Despite the benefits of investing, many women are still hesitant to start due to fears of losing money, lack of confidence in their abilities, or simply not knowing where to begin. However, research shows that women tend to outperform men in investing, with studies from Fidelity, Wells Fargo Advisors, and others consistently showing that women achieve higher returns and exhibit less variability in their investment strategies.
Women are more likely to stick to a long-term plan, seek advice, and avoid making impulsive decisions compared to men. On the other hand, men often overestimate their abilities, engage in frequent trading that can incur higher fees, and hold losing positions longer in the hopes of being proven right.
While women may not have a monopoly on these attributes, the evidence suggests that they have the demeanor and temperament to be successful investors. For those hesitant to take control of their finances, experts advise educating oneself and taking action, as the statistics indicate a higher likelihood of success for women in the world of investing.