You are here: Home - Investing - Experienced Investor - News -

Men happier to take investment risk, leaving them better off

0
Written by:
16/04/2019
Men are far more likely to take a risk on stocks and shares investment than women. While that may sound like a recipe for danger, it may leave them better off in the longer term.

New research from Aegon shows an investment gender gap: Less than a quarter (24%) of men are likely to invest any extra money they have into riskier investments such as stocks and shares compared to 14% of women. Just 6% of women compared to 17% of men say that they are comfortable taking risks with their money.

This may seem prudent in the short-term, but stock markets have generally given a stronger return than other ‘safer’ investments over the longer term. At the same time, cash savings accounts often pay less than inflation, which means that they lose money in real terms over time.

Only 34% of women said that they are confident that their chosen savings and investments will deliver strong returns over the next five to ten years, compared to over half (51%) of males surveyed. This lack of confidence pushes women towards lower risk options. They also have lower expectations on potential returns.

Research shows that women are more likely to opt for lower returns for minimal risk, with under half (46%) of men compared to 65% of women, saying that their risk appetite is low or zero, preferring minimal potential losses with modest gains. Only 8% of women have a high or adventurous approach to investment risk, compared to 18% of men.

Higher returns

The most recent Barclays Equity Gilt study, which looks at the long-term returns for different asset classes showed that $100 invested in 1925 would now be worth $512,045 if it had been invested in the stock market, $14,230 if it had been invested in 20 year government bonds and just $2,098 if it had been invested in cash. While these are US figures, the UK market has shown similar disparity of returns.

Nick Dixon, investment director at Aegon said: “Our research shows that, compared to men, women are more likely to lack confidence when it comes to making investment decisions and hold back from taking risks with their investments. There a number of societal, behavioural and economic reasons why this is the case but the reality is that avoiding risk generally leads to lower returns. Over the long-term, exposure to a diversified range of risk assets typically leads to greater returns than the perceived safety of cash.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • RT @RBS: NatWest wins ‘Best Online Student Banking Provider’, ‘Best Online Current Account Provider’ and ‘Best Direct Current Account Provi…
  • RT @YourMoneyUK: Well done to @EmporiumHQ for winning Best Direct Pet Insurance Provider #YMA2019 https://t.co/Bzcey4k2xO
  • RT @EmporiumHQ: WHAT A NIGHT! We're delighted to announce we landed another prestigious award as Best Direct Pet Insurance Provider last…

Read previous post:
Five ways to save money abroad this Easter

If you’re off on holiday this Easter, there are plenty of ways to save money while you’re overseas.

Close