It is important to dispel the myth that women aren’t suited for the complex, risk-laden investing world. Fidelity’s 2021 Women and Investing Study between 2011 and 2020 in the US found that women’s returns were 40 basis points higher than those of men. Warwick Business School also found that women outperformed men over three years in a 2018 study of 2,800 investors.
It is, therefore, not a matter of competence. It’s more about removing obstacles that hinder women from participating in financial markets.
This article focuses on investing for women, particularly new mothers, and how this situation is changing. What new investment tools can women use to become more prudent investors? And how do they go about doing it?
Mothers As Investors
Investing is good for everyone. It is important for mothers and women especially. Investing can improve the economic potential of any country and the socio-economic condition of families.
Research by the University of California-Berkeley on investing patterns has shown that women are less risk-averse than their male counterparts. They are also more likely to research thoroughly, be more disciplined, and are more confident. These traits are indicative of caution and a desire to achieve stable returns. Mothers are the foundation of the family. They seek steady income to support their children and family.
Research shows that women stay invested over the long term and are disciplined in asset allocations. Mothers are more likely than others to increase their wealth, create a stable income and improve the economic well-being of their families.
Which are the Best Investments?
So, the question is: Which are the best investment options? Although most reports and studies focus on investing in stock markets and the stock market, there are many other investment options.
A real estate is a great option for moms looking to invest in instruments which are easy to use and provide stable income.
Women may be already earning income by renting out their homes or parts of their homes for real property. Renting out a home or part of it can provide a second source of income for women. But, residential properties are just one part of real estate. They offer lower income growth rates than commercial reality.
Commercial real estate (CRE) has seen a huge boost from the availability of instruments such as REITs or fractional ownership, which have made it more accessible for retail investors.
REIT is an investment trust which owns, manages and operates income-producing real property assets. Individual investors can invest in this platform to earn income through rental yield or appreciation of the capital value.
Commercial Real Estate & Benefits of Fractional Ownership
Fractional ownership reduces the cost of investing in CRE. It is almost like crowdfunding for real property. These instruments also show how retail investors can earn higher returns by investing in CRE than residential properties.
Fractional ownership solves one of the most difficult problems in commercial property. High capital investment encourages small investors to get into the market, making it an attractive investment option for new-age investors.
CRE’s long-term capital appreciation shows how the realty sector can achieve its $1 trillion goals by 2030.
Towards Financial Freedom for Mothers
Mothers can transform their families and the nation by being prudent investors. According to the International Monetary Fund, higher participation of women in financial services will benefit beyond reducing the gender imbalance. Reducing the gender gap in the financial system will bring stability and boost economic growth.
Every day can be a mother’s day…to invest.