Women own around 5 trillion U.S. dollars. What’s particularly interesting is that women don’t invest. So it’s no big surprise that the industry senses a new market and that more and more startups are being founded to help women learn how to invest their money profitably. One of these startups was founded in 2014 by Sallie Kravcheck, a Wall Street heavyweight who served as CEO at Bank of America and Citigroup.
Are there concepts for women?
Sallie Kravcheck knows that the financial industry’s biggest weakness is the lack of women. “It’s a myth to say that women aren’t interested in investing,” says Kravcheck. “So far, the financial industry just hasn’t managed to reach women in an appropriate way.” Another problem, she adds, is that four out of five financial advisors are male —and the financial industry is characterized by gestures and vocabulary drawn from war and sports. With “Ellevest,” a digital investment platform founded by women for women, Kravcheck has reached out to many women and encouraged them to start investing. The biggest challenge? Finding a concept that appeals primarily to women. The startup takes into account the “female income curve,” which is generally flatter, career breaks due to child-rearing, and the fact that women have a significantly higher life expectancy. “Male financial advisors don’t take these factors into account, so it’s no surprise that women lose a tremendous amount of money when they follow the wrong approach.”
Studies show: Women generate more profit
However, women differ from men not only in terms of their financial needs—there are also differences in their attitudes toward investments and money. Especially when it comes to risk tolerance, women think very differently from men. The results of a study by the Australian asset management firm “nab asset management” clearly show that men take far greater risks than women. The reason? Anatomical differences in the brain. The fact that different regions of the brain are activated also makes women better investors. The numbers back this up: Female investors generally make more profit than men; in bad years, they also suffer fewer losses than male investors. The real problem here? Women aren’t even aware that they are the better investors. But even if women are the better investors, you shouldn’t invest your money in stocks or CFDs based solely on gender—at the beginning, it’s important to acquire knowledge. A free demo account also ensures that you can delve deeper into the subject matter without any risk and thus get to know the market even better.
Women lose “100 U.S. dollars a day”
Sallie Kravcheck knows that women’s money is often just left sitting in a bank account. “We know there’s a huge investment gap that ends up costing women dearly.” Depending on their income, women miss out on several million—per year. “If a woman earns $85,000 a year, she’ll set aside 20 percent. If that money sits in a bank account and isn’t invested, she’s missing out on $100 a day.” But it’s not just women who are missing out on money—fund managers are, too. That’s likely why more and more companies are offering “strategies for women.”
