Men are likelier to be more confident investors than women, according to a behavioural finance study from Investec Wealth and behavioural finance specialists Oxford Risk.
The independent study of around 2,000 people in the UK, Hong Kong, Taiwan and Singapore identified four common types of investors based on financial personality assessments.
It looked at four key criteria, including confidence; composure in the face of market volatility; willingness to balance financial and ESG outcomes; and the need to invest in familiar assets.
The study found that nearly one-in-three men (34%) were categorised as having the highest levels of financial confidence, compared with less than a quarter (24%) of women.
It also discovered that 38% of women were low on financial confidence, but scored higher on composure compared with 23% of men. Over half (52%) of men tended to have either high or very high levels of financial confidence, compared with 37% of women.
Michelle White, co-head of Investec’s private office, said: “Recognising investor types enables wealth managers to tailor their messages and advice to address people’s views and help them.
“It is not just about gender gaps, but it is the case that lower levels of financial confidence will mean people investing less and having higher cash balances. This means missing out on potential returns over the long term.”
