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Do Women and Men Really Have Different Investment Styles?

There is a lot of talk about the differences between the ways in which men and women invest. The discussions of these differences usually have the aim of getting people to examine their behavior, play to their strengths, and consider what they might do differently to improve their investment portfolios. However, it is possible that different investment styles are more a matter of personality than gender.

“Men and women aren’t that different: investing app Stash,” a Yahoo! article, states:

“When it comes to investing, the overwhelming narrative is that men have more of an appetite for risk than women. But, men and women are equally risk-taking with their portfolios, according to a new report from financial investment app Stash…

Ninety percent of female users identified as having a low or medium risk tolerance.

Though the vast majority of women don’t believe they are risk takers, their behavior indicates otherwise. In reality, when it comes to investing, men and women act practically the same, according to the report.”

While women may also be taking as many risks as men, the article also discusses how women have less wealth (due in part to gender-based pay disparities) and that women keep more of their wealth in cash.

The research also examined men and women’s behavior, finding that both groups make consistent contributions to investment portfolios. Where they differ is that the men studied are more likely to sell when the market doesn’t look so good, indicating that women can weather the highs and lows of the market better.

Whether you are a man or a woman or no matter how you identify, you can consider your tolerance for risk in investing and what that means for financial future. A Fee-Only financial planner can help you with a financial strategy that works for you and will help you meet your financial goals.