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Women investors more likely to keep calm

Staying cool: when stock markets go crazy, women more often hold steady with their portfolio positions compared to men

If extreme market swings have become the new norm, look to women of the investing world to keep calm and carry on.

Men are four times more likely to withdraw from investments during periods of turbulence, claims a new study from Nutmeg Saving and Investment Ltd., a Europe-based robo-adviser.

Its researchers focused on violent price moves in the FTSE 100 Index over the past six years, defined as any time the gauge swung by more than 1.5 times its normal monthly volatility. They said that out of 50,000 UK-based investors on the Nutmeg platform, women more often held their positions steady in the grip of events like the Greek debt panic in 2013 or February’s market correction.

The study sits alongside those from Morningstar Inc which found that, on average, women’s approach to risk gave them an edge as active money managers, particularly in fixed income.

“It’s good to see that female investors are staying the course during periods of market volatility,” said Shaun Port, chief investment officer at the London-based company. “This is likely to put them in a better financial position in the long-term.”

Still, an overwhelming majority across both genders stayed the course during the volatile events — a mere 2.4 per cent adjusted their risk tolerance or sold investments. Among those who did sell, however, men made up by far the largest group, according to Nutmeg.