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Women are less interested in investing. Why, actually? - Walla! Business

2021-01-24T22:43:29.837Z

The world of investing, in real estate or finance, is completely dominated by men. Why do women focus less on investment channels, what benefit can come from investing and how can the trend be completely reversed in the future?



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Women are less interested in investing.

Why, actually?

The world of investing, in real estate or finance, is completely dominated by men. Why do women focus less on investment channels, what benefit can come from investing and how can the trend be completely reversed in the future?

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  • Investments

Amit and Hagar Dror

Monday, 25 January 2021, 00:49

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Accompanied by individuals, units, couples and families over the past three years, we are familiar with the data according to which the majority of those interested in investing are men by a significant margin.

For this reason, we have chosen to raise awareness, not on Women's Day, but on weekdays, for the female leadership of the economic well-being of the family or of the single cell.

All this with the aim that the things written here will reach as many women as possible, who will be chosen, on their own initiative, to be interested in their own economic well-being and money.

It is clear to us that consciousness and need, are long-term processes that are built up over years, but whoever reads this column at least started the first step in the right direction.



The trend is definitely positive.

Here, we googled for women and alternative investments, even before the search the feeling intensified that something in the attitude of women and alternative investments is starting to change.

The search revealed that between January 26-28, there will be a world conference on alternative investments in which all the speakers are women - the Women's Alternative Investment Summit, in leading positions in investment bodies around the world.

Investments are not a world for men only, and in 2021, in the midst of the corona crisis, women need to increase their involvement and interest.



There is no doubt that there has been significant progress on the issue of female leadership of finance issues and in particular home investments.

In recent years women are increasingly taking responsibility for their money, whether they are living in a relationship, single or single mothers.

The increase in the cost of living, the standard of living and, in general, occupational uncertainty, obliges, in my opinion, every woman to be involved in her investments and finances.

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It is definitely worth changing the curve that is clearly in favor of men (Photo: ShutterStock)

The Academy for Women

Academic studies show that women are no less successful investors than men and even on average they invest better.

The reasons for this are varied, ranging from the feminine nature of taking more calculated risks as well as patience and perseverance.

So this column was built as an investment guide that comes to stand on the important points on the way to investing your money.



We will define them as alternative investments.

As a simple explanation, these are investments that are an alternative to investments in the capital market, where most of the public's money is anyway.

In order to create for yourself a distribution of assets between the capital market and channels that are not dependent on it, the disposable capital of the household should be directed to these channels, as part of the concept of managing and dispersing opportunities and risks.

Academic studies show that women are no less successful investors than men and even on average they invest better.

The reasons for this are varied, ranging from the feminine nature of taking more calculated risks as well as patience and perseverance.

So this column was built as an investment guide that comes to stand on the important points on the way to investing your money.



We will define them as alternative investments.

As a simple explanation, these are investments that are an alternative to investments in the capital market, where most of the public's money is anyway.

In order to create for yourself a distribution of assets between the capital market and channels that are not dependent on it, the disposable capital of the household should be directed to these channels, as part of the concept of managing and dispersing opportunities and risks.

So what are the steps on the path of women to alternative investments?

  • Perception and awareness of female abundance - regardless of your family status, the key to embarking on the investment of your money and in general a perceptual focus on its investment in order to enjoy an increasing standard of living in the future.

    All of these depend first on your personal will.

    To invest you must also plan where you will be in a few years.

    If in the past when talking about money and investing you always heard it was not for you, or created in you the feeling that you should not be interested in it, it is time to break away from this misconception.

  • Deciding on the investment budget - you must define the amount you want to invest and remember that it is an amount that will not be liquid in the next 3 years (the average time frame in an alternative investment).

  • Defining the degree of liquidity of funds - Those who choose an alternative investment channel, should remember that although they are less volatile investments, they are also much less liquid.

    From the group of alternative investments, you can choose transactions that aim to exit after a few years, or investments that yield receipts over the period.

    It's all a question of what your needs are.

  • Composition of financing - Do you only use equity?

    Or you can invest equity in the addition of a loan, for example from a study fund, provident fund or savings policy (these are products that give low-interest loans of prime minus half).

    Loans that do not have a current repayment of principal and interest can be added to your budget and thus invest the money.

  • Choosing players or investment bodies - this is one of the most important steps that sometimes people give the least thought to.

    The body you choose to make the investment of your money will determine the results and if there are challenges along the way, the quality of the body will determine the professionalism with which it will deal with them.

    The knowledge, skill and experience are the ones that will determine both the quality of the investments that will be presented to you and the degree of success of the investments chosen for you.

  • Determining the degree of risk in an investment - Are you interested in an investment with a high level of risk and a high return potential, or are you actually interested in starting from a solid investment, for example through a fund that invests in debt.

    Women tend to be more conservative than men, it is definitely important that you choose and make investments that allow you to sleep well at night.

  • Choosing the specific transaction that suits your needs from the best players - to different investment entities, a wide range of transactions that differ in the investment area, type and structure of the transaction and also in the cash flow.

    For example, if we are a household that owns an apartment in Israel, it might be more correct in terms of diversification to invest in a project in a Western country.

    After all, we do not want to be exposed only to real estate prices in Israel.

  • Maximizing the risk-to-risk ratio - if the money positions in the deposit at the risk bank are almost zero, but in an era of zero interest the return will be close to zero.

    A situation where your chances of losing are negligible, but you will also not be able to make a profit is not optimal.

    Your focus should be on transactions where you can achieve an average return of 7% net, but the chances of losing the fund are very low.

    Examples of a good risk profile can be found in collateral-backed debt fund transactions against loan repayments.

    For those of you who are interested in exploring higher levels of risk, so of course you can get into real estate investments in Western countries in improvement deals, here too the return potential will be higher.

  • Checking the collateral in the transaction - At the basic level, you must check at all that your funds are transferred only to trust accounts.

    But this is the very first test.

    When you make an alternative investment one of the important points is the collateral you get as part of the deal, i.e. the collateral you get against your money investment, they are meant to secure the funds.

    For example, if an investment fund has purchased a property in a U.S. state, you want to make sure that the rights in the property are actually recorded against the funds transferred, it is important to choose a body that sees the importance of investors' collateral in the transaction seriously.

  • Do not be blinded by high returns and certainly not by return promises - this issue is actually an advantage for women when it comes to investing.

    We less look solely at the profit potential, but examine the degree of probability of achieving it.

    Instead of looking at the return, when an alternative investment deal is presented to you, try to understand whether the business plan is built while taking safety margins and conservatism, so that the body through which we invest intends to surprise us for good and not surprise us badly.

    For example, if you choose, for example, a real estate investment project abroad, then a professional company will not build in the business plan on profit as a result of rising real estate prices only.

Women are less blinded by this thing - and that's their advantage (Photo: ShutterStock)

Bottom line: Get out of skepticism, start investing

Unfortunately, many women are skeptical about investing in their money, but they have advantages in making investment decisions.

When looking at the real needs, women's motivation to invest their money or that of the family should be greater, than that of men.

Reality proves that the average wage of women is lower than that of men, the life expectancy of women is higher than that of men, and many women choose to start a single family.

These are just some of the reasons why women should strive for investment and increase capital.

There is no doubt that the beginning is challenging, it requires maturity, readiness and understanding of the need, these do not happen in one day.



Due Diligence: This article aims to enrich the knowledge of readers, but it cannot replace individual counseling that takes into account the specific needs of each and every person.

It is suggested that each reader consult personally with professionals, before making decisions.

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Source: walla

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