Jan 8: Men have long dominated the stock market, but this is beginning to change. An increasing number of women are making their mark in the investment industry. A recent survey from Fidelity Investments states that women now make up 22% of the whole value of the US stock market, an increase from 19% in 2016. In terms of returns, women are likewise exceeding males; their average yearly gain is 10.9%, while men’s is 10.5%.
Why are women becoming more interested and successful in investing? Several factors contribute to this trend, such as:
- Increased financial literacy and education. Women are more likely to seek out information and advice on how to invest wisely and achieve their financial goals. They are also more likely to diversify their portfolios and avoid risky bets.
- Greater financial independence and responsibility. Women are earning more, saving more, and taking charge of their finances. They are also more likely to be the primary breadwinners or decision-makers in their households, which gives them more incentive and confidence to invest.
- Higher social impact and purpose. Women are more likely to invest in companies that align with their values and have a positive impact on society and the environment. They are also more likely to support female entrepreneurs and leaders, creating a virtuous cycle of empowerment and innovation.
The benefits of investing for women are not only financial but also personal and social. Investing can help women achieve financial freedom, which means having enough money to live comfortably and pursue their passions without depending on anyone else. It can also help women build self-esteem, confidence, and leadership skills, which can translate into other areas of their lives. And it can help women create a legacy for themselves and their families, as well as inspire other women to follow in their footsteps.
If you are a woman who wants to start or improve your investing journey, here are some tips to help you:
- Define your goals and risk tolerance. Before you invest, you need to know what you want to achieve and how much risk you are willing to take. Do you want to save for retirement, buy a house, start a business, or something else? How long can you invest your money? How much can you afford to lose? These questions will help you choose the right investment strategy and products for your needs.
- Do your research and learn from others. Investing can be intimidating, especially if you are new to it. But there are plenty of resources and tools available to help you learn the basics and beyond. You can read books, blogs, podcasts, newsletters, magazines, or websites that cover investing topics. You can also join online or offline communities of female investors who can share their experiences, insights, and tips with you.
- Start small and grow gradually. You don’t need a lot of money to start investing. You can start with as little as $50 or $100 per month and invest in low-cost index funds or exchange-traded funds (ETFs) that track the performance of the stock market or a specific sector. You can also use apps or platforms that allow you to buy fractional shares of individual stocks or ETFs. As you gain more knowledge and confidence, you can increase your contributions and diversify your portfolio with other types of investments, such as bonds, real estate, or cryptocurrencies.
- Seek professional guidance if needed. If you feel overwhelmed or unsure about your investing decisions, you can always consult a financial planner or advisor who can help you create a personalized plan that suits your goals, risk tolerance, and budget. You can also use robo-advisors or automated investing services that use algorithms to manage your portfolio for a low fee.
Enjoy the process and celebrate your achievements. Investing is not only about making money, but also about learning new skills, discovering new opportunities, and having fun. Don’t let fear or doubt stop you from taking action. Instead, embrace the challenges and rewards that come with investing. And don’t forget to celebrate your milestones and successes along the way.
Investing is one of the most powerful ways for women to empower themselves and others. By taking control of your finances and growing your wealth, you can achieve financial freedom and make a positive difference in the world.
By
Sujata Muguda
Shreyas WebMedia Solutions