Gender split for shares investing

YOUNG Australians are diving into the sharemarket in greater numbers, but there’s a gender divide in how they invest .

New research by nabtrade has found that women aged 18 to 24 have share portfolios averaging $16,200 – 20 per cent more than men of the same age – and trade less frequently.

It crunched the numbers on hundreds of thousands of trading accounts and found key differences in investments that were owned.

Women favour retailers such as Coles, Woolworths and Harvey Norman, ethical funds, and companies such as A2 Milk and Bubs Australia. Men go for overseas shares, energy and gambling stocks.

Nabtrade’s director of SMSF and investor behaviour, Gemma Dale, said women tended to buy things they understood while men were more likely to speculate.

“I think young women view investing in the sharemarket as a long-term game, whereas young men are enthusiastic about quick profits,” she said.

“Women want to be very sure of things before they invest in them.”

Ms Dale said the proportion of young people investing was rising, and those looking to start should not feel intimidated, do plenty of research, think longterm and learn from mistakes.

Dixon Advisory managing director Nerida Cole said new investors should start small to build experience, and avoid being paralysed by the search for the perfect investment.

“Shares are a risky asset and you need to be prepared to invest for at least five years,” she said.

“That’s why if you are trying to save for a first home purchase in a shorter time frame, shares are not suitable.”