Women and Investing.
Hey guys, so here I am back with another thread, in this thread we'll be talking about women and investing, so here we go. I believe, women can not only be good investors, they also have a natural advantage over men when it comes to investing.
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WHY WOMEN ARE BETTER IN INVESTING THAN MEN?
1. In most Indian homes, the daily expenses are managed by a woman, usually the wife or the mother. Running a house is no easy task. It involves buying the
right quantities of each and every item at the right price,
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ensuring that the family eats healthy, making sure all day-to-day bills are taken care of, and at the end of
the month, being able to keep some money aside for emergencies. The housewife does this skilfully, even as inflation rates move up and down.
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2. Women, generally are also more security-conscious than men. They prefer to follow rules and walk along the path that offers safety rather than adventure. Unlike men, who may jump into schemes even if the details are sketchy, most women will hesitate to make a
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commitment until they are completely sure of the
smallest detail.
3. Women also have a natural instinct for nurturing whether it is babies or pets or plant somehow, things thrive in their care. It could be the patience they are
blessed with or their sincere interest in
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even the most seemingly insignificant things. The same is the case with investments most women are able to nurture even the smallest amounts into something meaningful.
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6 REASONS WHY WOMEN SHOULD GET
MORE PROACTIVE ABOUT INVESTING
1. Life expectancy in India for women is around 70 yrs compared to 67 yrs for men. And since women are usually a few years younger than their husbands, most will outlive their husbands by a few years.
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2.Although India still has a low divorce rate compared to many foreign countries, the rate is increasing with each passing year. Women should therefore not discount the possibility that they might have to manage their finances on their own in case of such an eventuality.
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3.Many women leave their jobs to manage their children and the home. If the woman also gives up her involvement in the investing and retirement planning process, she may find herself in a difficult position in case of early widowhood.
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4.Many women nowadays opt to remain single. Although they may miss out on the second income of a spouse, they would be totally responsible and in control of their financial life.
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5.Because women are more risk-averse than men, many women prefer to invest in options that are low in risk and offer lower returns. While this is a safe strategy, it is not the ideal strategy to earn returns that beat inflation or help you reach your goals faster.
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6.Nowadays both parents are equally involved in the upbringing of their children. However, on an average, mothers still spend more time with their children on a day to day basis. Women thus have the opportunity to educate their children about good money habits from
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a young age. Becoming a knowledgeable investor will make your task of imparting the right money skills to your children easier.
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All these amazing qualities! Still women are behind men when it comes to investing, some possible reasons found out by studies are:
1.Investing in the stock market requires the right knowledge. A study by FINRA Investor Education Foundation and George Washington University
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last year found women lag their male counterparts in investment knowledge and confidence. In a 10 question quiz measuring investment knowledge, the study found that only 8% of women versus. 21% of men got 80% or more answers correct.
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2. As much as 71% of men assessed themselves as having a high level of investment knowledge versus 54% women. Also, 49% of the men in the study felt comfortable making investment decisions, versus 34% of the women. On top of that, women are less confident about investing.
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A Money Crashers survey in 2020 found the majority of men, 59%, preferred to manage their own investments versus 34% of women. The key reason women don’t know where to start. Educating herself in the field will give her more confidence in investment decisions as well.
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3.Women tend to have lower financial risk tolerance than men. It is all connected to men groomed into thinking they know everything and will make the right choice. But overconfidence is one of the worst pitfalls of investing. So women are better equipped to invest,
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which should encourage them to start investing.
Instead, women are scared. Too much caution makes them miss out.
4.For women, the well-being of the family comes first, and financial wealth, last. After work, women go off to their second shift of taking care of children,
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housework, and cooking. But the irony is that despite investing less, there’s evidence that when women do invest, they’re better at it.
Why? For building wealth in the long term, one trait that matters the most is discipline. What’s more important is having a
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financial plan and sticking to it. Research suggests women are better at these.
5. So, women should invest in the stock market as it generates wealth. If women don’t invest their savings, they will become poorer.
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True gender equality will come only when women step up and start investing.
Ladies shoot your shot now, start investing as soon as possible
Thank you for reading
Sources: What every Indian should know before investing.
#women #InvestInYou
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