Sunday, April 5, 2020

Men Take More Risks With Their Money Than Women

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Men are more likely to take risks when investing their money than women, who are much more conservative with their cash.

One in four men will invest any spare cash they have in riskier investments, compared to one in six women.

But just over half of men (51%) are confident that their investments will deliver strong returns over the next five to 10 years, while only a third (34%) of women think the same.

While two out of three women plump for safe investments, only 46% of men admitted they would do so, in research by financial firm Aegon.

Only 6% of women confessed they were comfortable with taking investment risks with their money, while three times the number of men (17%) confessed that they would do so.

Women lack confidence

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. Seeking sound financial advice improves understanding of investment risks vs returns and builds confidence that a chosen investment strategy can deliver in line with an individual’s goals.”

Only 8% of women ready to gamble with their cash

Dixon added that the 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.

At the other end of the spectrum, 18% of men compared to just 8% of women have a high or adventurous approach to investment risk, preferring potentially higher long-term returns for increased risk.

The research suggests that men are more likely to fall victim to scammers who dupe investors into parting with their cash in return for a stake in investments that carry high risks.

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