Here are few interesting stats from the team at boringmoney.co.uk, a company that makes a big effort to demystify investment so it’s easy for us ordinary folk to understand.
- Got an ISA? 10% of women and 17% of men do.
- What about other investments? For women it’s just 7% while for men it’s 14%.
- If you pop onto one of the growing number of self-investment platforms available nowadays, you’ll find that men outnumber women by 2 to 1.
The truth is that while less women are getting into investing, this area is a lot more profitable and could be earning more money. While there are different reasons why females are less likely to get involved in trading than males, one thing is for certain – they’re missing out.
There is some evidence that women are actually better at investing than men. A big study in California recently discovered that women ‘out invested’ men to the tune of about 2.3%. The thing is men tend to trade more while women are prepared to hold out and trade less, which is often better for the accumulation of wealth over the long term.
If you’re leaving your money in a cash ISA or a savings account, chances are you’re getting very little in the way of interest at the moment. Of the 2,000 or so products currently on the market, practically all are paying out 1% or less. Investments on the stock market generally deliver returns over and above inflation which means your money is working a lot harder for you.
Women are pretty good at being long term investors – they don’t get as itchy to change investments as men and they are a lot more risk averse. This is often because men see it as a battle, a game of tactics or wits with winners and losers. Women tend to think of the long term consequences and have a particular focus in mind, for example, saving for a mortgage or retirement.
There are also a number of investment products out there that are a lot more tax efficient than some high street schemes. Picking the right one is vital if you want to make more of your spare cash.
But the big question is whether you should also be looking at DIY investment platforms. Aren’t they a bit risky? The good news is that you can invest as little or as much as you want so you can afford to test the waters and see if it works for you.
As with much online nowadays, however, you have to choose your platform carefully. All experts suggest that you check the platform is registered with the Financial Conduct Authority which means they need to follow the rules. Don’t take their word for it either, check with the FCA itself.
Making the most of your money is important and getting into investments that differ from the high street norm can be profitable. It’s worth taking a closer look at if you are worried that your current investments aren’t yielding as much as you’d hoped.