Planning to invest? Here are few tips for women investors

Hello Ladies! Are you looking to increase your money or save more for your future? If yes, try some luck at investing. As everyone knows, making money through investments in stock markets always come with risks, but nothing comes easy in life.

Many women are found quite hesitant regarding investing in share market. Also, as per studies, female investors receive less encouragement and guidance than male investors while starting their investment careers.

According to various media sources, around 72% of women don’t feel confident in selecting financial investments by themselves.

This article has tips for all female investors who want to start their share market investment journey.

1. Be confident while investing

Different people have different confidence levels during investing. As per research, 49% of males feel comfortable making an investment decision, the percentage of women is less at 39%. Therefore, female investors should commit to replacing their fear with self-confidence and assurance, regardless of what they are dealing with.

2. Conduct in-depth research

With thousands of individual stocks and mutual funds, it can be challenging to select a few. Hence, as per experts, conducting thorough research before investing can save from potential losses.

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3. Get enrolled in a workplace retirement plan

Financial planners recommend women investors start investing in their 401k or 403b retirement plans. Every investment that goes into these plans reduces current income taxes while the money grows tax-deferred.

Also, in most cases, the employer matches some portion of the investment. Thus, female investors should choose a target-date fund or any low-fee index funds for their investments.

4. Diversify portfolio finding risk tolerance

Women investors should assess their current financial position along with their future to determine potential risk. Then, experts suggest diversifying the portfolio by putting some money into cash and bonds, as they are less volatile.

Female investors should invest according to their risk tolerance level. Focusing on both risk tolerance and strategy, female investors can keep their portfolios in balance.

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5. Robo-Advisory

Female investors can lower their costs if they opt for a robo-advisory service. This is one of the latest innovations in the financial advisory field. Because they rely on advanced computerised financial algorithms to provide affordable investment advice, robo-advisory has virtually eliminated the human element. Many companies like – Betterment, SoFi and others give the investors outstanding, low-fee robo-advisory services.

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6. Counteract biases

Counteracting own biases related to investment is a significant factor. Women investors should understand their fears related to their investment and must work accordingly. Here are some tips –

• Remember to look at the data efficiently; remember, even with fluctuations, the average annual return over the past three decades was 10%.
• Learn from some top investors by reading some famous investment books.
• Female investors should be confident to ask for financial advice.

7. Work with professional

Adding to the – Do it yourself – learning, women may need a financial advisor in the process. There are several factors before considering a financial advisor. But female investors should have a mindful approach towards choosing an advisor as many may have a conflict of interest.

Bottomline

According to McKinsey & Company, wealth management organisations will keep a strong watch on women investors over the next three to five years as the later are increasingly taking responsibility of their households' financial decisions. With opportunity knocking at the door, Women are well placed to convert their money into wealth.