Investing is a great solution for wealth and financial security, but women investors seem to struggle with it more than men. Lower wages and a lack of confidence may hurt women’s ability to succeed as investors. However, women’s characteristics and personalities can make them better at investing than men. Various statistics show that the percentage of female investors is further increasing and they have also achieved remarkable achievements. These are also proofs of the brilliance of women in the field of investment.
According to Fidelity Investments’ 2021 Women and Investment Study, despite many women’s lack of investing confidence, their portfolios surpass their male counterparts. According to a review of annual performance across 5.2 million accounts from January 2011 to December 2020, women investors earn positive returns on average and outperform males by 40 basis points, or 0.4 percent. The latest findings back up previous study from the company, which found that women can outperform males with a buy-and-hold investing strategy rather than frequent trading. The findings further show that women have also made strides beyond retirement accounts, with two-thirds now investing extra savings outside of emergency funds, a 50% increase since 2018.
Although the data is so clear, it is important to find out the reasons why women tend to do better than men in terms of investing and saving. As you may guess, behavioral characteristics are one of the main elements affecting investment decisions, and hence the returns. Women are more likely to invest over a long period of time, whereas many men treat investing as a game. Besides, since women are often less confident than men, they are more conservative before starting investment. Women investors are believed to pay close attention to profitability as well as possible risks. The year 2015 was not the best year for the stock market, but women seemed to stay unscathed. Female investors using openfolio lost an average of 2.5% that year, compared to a 3.8% loss for men. Even professional women investors tend to work better than men. According to Goldman Sachs, 43% of women-managed mutual funds surpassed their benchmark in 2020, compared to just 41% of those managed by men.
Nevertheless, women have to face several financial barriers to economic freedom, entrepreneurial pursuits, independence, and security. In the face of these challenges, many are looking to cryptocurrency as a way to bypass more restrictive traditional monetary systems in order to gain greater access to and control over financial opportunities for themselves, their families, and businesses. Several crypto exchanges and online brokerage businesses have reported an increase in the number of women trading cryptocurrency. Some are expecting this number to continue rising, thanks in part to investors’ greater awareness of the asset classification, their desire to buy into hot markets, and the promise of improving their savings.
For all the above, women investors have been identified as potential subjects of various fields of investment, especially stock market. Thereby, LiveTrade has classified women as target customers for LiveTrade App – our stock-trading application. LiveTrade App is considered one of the best time and cost-optimized solutions for various types of investors. Particularly, stock trading with a 24/7 transaction service on a simple and friendly interface enables women to invest and earn money after their working time without mastering much knowledge of this sector. Therefore, LiveTrade App is expected to be a promising factor to facilitate the journey of stock investors, especially women.
