When it comes to investments, it tends to be a largely male-dominated environment. Men are more than twice as likely to invest in stocks and shares ISAs than women, who prefer to keep their savings in cash. As a result of this more cautious approach, it seems that women are missing out on the potential for higher-level returns.
However, more and more women are starting to realise the benefits of investments, helping to broaden the market. If you’re thinking of investing for the first time, below you’ll discover some important advice you’ll want to follow.
Why don’t more women invest?
Although more women are starting to invest, there is still a big gap between male and female investors. So, why don’t more women currently invest? There are a few factors that hold women back from entering the world of investments.
The main reason women avoid investment is that they feel that the way investment is communicated is overly complicated and difficult to comprehend. Women generally have less disposable income as well and often a greater sense of responsibility for their dependents. This can lead to greater risk awareness and a sense of anxiety about not having adequate availability of emergency cash.
There is also the fact that most investment companies tend to be geared towards men and do not take those gendered factors into account in their communications and customer relationships.
The benefits of investing
It makes sense to build up a cash reserve before thinking about investing. Experts recommend that you aim for an emergency buffer fund of between 3-6 months living expenses, depending on your situation. Having that level of cash savings in place will calm your money anxieties and free your mind up to think clearly about investment options.
There are a lot of investment benefits you can utilise. While women may not invest as much as men, they tend to make wiser investments. With the right choices, you could build up a good amount of wealth from your investments.
What you need to remember is that investments deliver long-term wealth. So, they aren’t necessarily something that will boost your income right away. You need to have patience to see the full benefits.
How can you get started?
Before you jump into the world of investments, there are a lot of factors to consider. Making sure you understand how they work is just part of the challenge. The investment sector can be hard to understand, especially for beginners.
To maximise your chances of successful investment, it’s a good idea to seek help from a local specialist, someone on the spot who you can ideally have a face-to-face consultation with to enable them to fully understand your objectives and situation. If you’re in a large city like London, then you’ll have no problem finding a London based wealth management firm. Be sure to check reviews and customer testimonials to see if they have a good track record in advising female investors. They will be able to help you understand the markets, as well as help you to make the best investments.
Investments can be a risky business. However, these risks can be minimised by seeking expert advice. You’ll also lower the risks if you do your own research into how investments work.
In the longer-term investment is more likely to bring a higher return than cash savings. With savings rates almost through the floor, today’s ultra-low interest rates mean that savings are likely to fall prey to inflation and lose real value over time. If you have cash to spare, seriously considering investment is a rational move.