Are women better investors than men?
The battle of the sexes has been
going on for centuries, and many believe it is far from over. When it
comes to the world of finance, for the most part, it is still dominated
by men. Approximately 95% of hedge fund managers are men, however,
research over the past decade indicates women are better investors than
men.

If you are wondering how this could be, the answer
is simple: it all comes down to the perception of risk. When faced with
risky situations, women will tend to feel fear, while men will tend to
feel anger. These different emotions lead to different reactions,
leading to different styles of investing.

Whether you are talking about a professional share
portfolio, a home loan, a hedge fund or even a few family-owned shares,
most investments will involve some kind of risk. And the way that we
deal with this risk can determine how much money we make from them. If
you sell too early or buy too late, it can mean the difference between a
huge pay-off and a huge loss.

When faced with risk, women will feel fearful and
feel the need to be in control, and men will feel anger. This will lead
women to be wary and cautious, whereas men will be over-confidant and
let their ego make their choices. If faced with a sudden dip in the
sharemarket, women will take their caution and their need for control,
and hold onto their shares to review the situation. The anger felt by
men will spur them into action, will can lead to a buying and selling
frenzy.

While no one can predict the market, the research
showed that this female reaction resulted in higher financial gains.
Their innate caution led them to be more careful, which ended in higher
profits. Men were less likely to ask for help, and were more interested
in boasting to peers about gains than worried about any losses incurred.

While it's not wise to make sweeping statements,
there has been a great deal of research that proves that women seem to
be better investors. And with these women making 1% more on average than
men, it might be wise to follow in the footsteps of such women
investors. Take caution and think about what you are doing when
investing. It doesn't always pay to jump in and out of situations just
for the sake of feeling like you are taking action. Sometimes it will
pay to take a step back, review the situation and think about how your
action will affect the outcome.

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