A study by TD BankGroup of 4,000 men and women found that 90 percent of women who handle their own portfolios are confident or level headed and 75 percent of women are moderately to very successful with selecting investments. The study showed that generally woman are holding their investments, particularly during the tumultuous market, where as men are more likely to make changes more frequently within their portfolios. Each strategy has it’s pro’s and con’s, but of course balance is very important. Hit the jump for more.
Based on the scientific research on men and women and investing, the TD study isn’t exactly a surprise. Multiple studies have shown that female investors tend to be more risk-averse than their male counterparts. Because of this, women consistently do more research than men before making an initial buy, trade less frequently, and hold longer.
The result? Women in the TD study told surveyors they hadn’t changed anything in their portfolio because of the market’s recent instabilities, and were confident that their long-term plans were sustainable in the face of them. Even the Barclays study mentioned earlier concedes that “men are more likely than women to try and strategically time the market instead of simply buying and holding. Yet men must have some indication that this is not an effective strategy — or at least that it is one that they take too far.”