Modern world has changed several social concepts. As compared to past, now men and women are equally contributing in various fields. Even in several third world countries in Asia and Africa, women are actively supporting their husbands and families financially. Now, both genders are seen working together in various fields and investing in all types of businesses. Women are now seen investing from PRO service companies in Dubai to defense companies in Maryland.
But even then, reality can’t be changed. There is no doubt that women are different from men on physical, mental and emotional levels. Their requirements and abilities are different. It clearly means that they need different type of assistance for investment. The advice effective for men may not prove as effective for them. They can only excel in any field if their issues are solved through meaningful discussion and advice.
There are certain factors that separate men and women. These differences also include financial point of view. The abilities and weaknesses of women have to be addressed to ensure a better financial advice for them. It is found in a 2001 study by University of California that men are more likely to take risks due to overconfidence. Comparatively, women try to remain as safer as possible while investing money. This increases their chances of performing well in long term.
There are few other departments also where women outperform men. They research more than menand tend to remain calmer in normal conditions. But it is also known that women are vulnerable to make mistakes while in distress. In this condition, they can take extremely wrong decisions as they can’t control this situation easily.
After knowing these differences between men and women and their decision making properties, it is easier to know that women have different capabilities and shortcomings as compared to men. It clearly means that they need different kind of advice as compared to men in order to progress in any field. If we look at the emotional and social structure of women, it is better to advise them not to make critical investment decisions while in distress as they are prone to make grave mistakes in this condition. In calm situation, they are ready to research better than men and the decisions they take is expected to produce better results.
Another important thing for which women need different advice from men is their attitude to invest in businesses free from risks as much as possible. It is a safer option but you can’t expect completely risk-free situation in finance and business. It is important for women to understand that they have to take calculated risk in order to get something from their investment. Remaining on the lower side of risk is appropriate, but trying to avoid risk at all is useless. It will not provide any benefit to them.
Therefore, a better advice exclusively for women is instead of looking risk-free business, it is better to take some riskafter consulting experts of the field in the market. It will assist them in getting more profit while remaining on safer side.
Experts and consultants also need to look at other behavioral and emotional differences between men and women before giving them investment advice. It means these experts must be familiar with financial psychology. Only this way, they can prove to be better advisors for both men and women.
Mona has experience of more than 6 years working as a content writer in a Dubai-based consultancy firm, Riz& Mona Consultancy since. During her career, she has written for various business niches including trade, finance, investment, taxation, offshore business, small business etc.