Disclaimer

This is to inform that by clicking on the hyperlink, you will be leaving sc.com/ae and entering a website operated by other parties.

Such links are only provided on our website for the convenience of the Client and Standard Chartered Bank does not control or endorse such websites, and is not responsible for their contents.

The use of such website is also subject to the terms of use and other terms and guidelines, if any, contained within each such website. In the event that any of the terms contained herein conflict with the terms of use or other terms and guidelines contained within any such website, then the terms of use and other terms and guidelines for such website shall prevail.

Thank you for visiting www.sc.com/ae


Proceed to third party website

Sorry guys, but women make better investors. Here’s what you can learn from them.

Lady looking at tablet

Sorry guys, but women make better investors. Here’s what you can learn from them.

Investing is traditionally thought of as a male-centric activity, but women may actually be better suited to taking the bull by the horns. Here’s why.

Keen on long term relationships and with an eye on a secure future, it’s no wonder that women make better investors than men.

According to the recent Emerging Affluent Study 2018, conducted across 11 countries, it’s women that are leapfrogging up the social ladder, exceeding their parents at every level and successfully “supercharging” their fast track to financial independence. Globally 55% of this “supercharged” group are women, outstripping their male counterparts.

Here’s why women may actually be better at investing than men.

They trade less – but trade smarter

In general, women are less likely to engage in short term trades compared to men. A study by the University of California, Berkeley, published in the Quarterly Journal of Economics found that men make 45% more trades than women.

The more you trade, the more likely you are to eat into your returns paying trading fees. On the flip side, sticking to a fixed portfolio of stable, low-yielding assets, helps to increase the stability of investment habits, and keeps you from making impulsive investment decisions.

They buy and hold their nerve

Women have long-term goals, which guide their investing habits. They are known as “buy and hold” investors, who are saving up for milestones such as their child’s university education and their own retirement.

Based on a national survey conducted by financial services firm LPL Financial, women investors tend to research potential investments in depth before deciding on their asset allocations to ensure they can benefit from better portfolio returns.

A study co-authored by researchers at the University of New South Wales and University of Sydney Business School also revealed that women investors are more likely to follow stable trading patterns, buying underpriced stocks and selling overpriced stocks over both short- and long-term periods, making the most of the opportunities offered by fluctuating markets.

They use empathy

The same study by the University of California, Berkeley, highlights how neuro-economists have found women to be more empathetic and tuned in to cues. This, they say, may enable them to enjoy greater trading intuition.

They are not afraid to ask for help

Women’s investment success may be in part to their willingness to ask for expert help. Research by financial services company Fidelity revealed that close to 10% more women used professionally managed accounts compared to men. Among male investors, 64% preferred to manage their own investments.

Want to supercharge your financial success?

Get in touch with our financial experts at Standard Chartered today. We are here to help.

Disclaimer

This article is brought to you by Standard Chartered UAE.

This information is neither an offer to sell, purchase or subscribe for any investment nor a solicitation of such an offer. This information is general and does not take into account a person’s individual circumstances, objectives or needs. Investments carry risk and values may go up as well as down.

Standard Chartered is not liable for any informational errors, incompleteness, delays, or for any actions taken in reliance on information contained herein.