Real estate family offices – For decades the financial services and financial management industry was typically observed to be a male-dominated society. The gender inequality in this sector was massive, and males outnumbered female employees by three, four, or sometimes even a ratio of five to one compared to specific categories.
This highlights how lacking women’s influence in this industry was. The primary reason for this can be conclude in the past when most women worked less and held comparatively lesser wealth than their male counterparts.
They also showed more complex investment cycles, given they took more time off because of family or child responsibilities. However, all this was acceptable in the past, and women today are just as career-oriented. They are breaking barriers in every male-dominated society. All while making a mark for themselves. Women are more likely to be hire as investment managers in family offices today. Hop on below to find out why!
Why are Women More Likely to Work as Investment Managers in Family Offices?
In the current times, wealthy founders and individuals like Sergey Brin, or the Hyatt hotel heirs JB and Tony Pritzker, have appointed some of the most qualified women in finance to manage their investments and wealth. Do you want to know why women are most likely to be hire as investment managers by family office real estate investors? We got a few solid and valid reasons listed for you below.
Studies have suggested that compared to men, women are less likely to make behavioral blunders that can destroy investment returns.
This is because while both men and women have the urge to fiddle with their earnings. And trade their investments in the hope of better revenue, the men in this equation outdo women. Men in finance are consider to be more restless investors and trade far more than women.
One significant aspect of the male-counter parts buying or selling investments has also to do with slight overconfidence. While buying, selling, and trading your assets is not a wrong move. By doing this makes sense only if you are sure that you have a competitive edge in the market. Also, hold more knowledge than other investors.
However, not every male member in the industry understands this caliber. And hence exaggerates their abilities and learning far more than women do and sometimes can foresee losses. Women, on the other, are more particular about their trading means. They are also ensure to instill thorough thinking before making any investment trading. All these reasons back up the fact that women are more likely to get offers from a list of real estate family offices.
Better Trust is Ensured with Women Investors
Another strong reason women are most likely to be hired as investment managers in family offices is the trust other women put in them. In this male-dominated industry, many women who want to put in their money for investment are less likely to be content with the male financial advisers they have.
The majority of the women in the world, according to demographics, outlive their husbands and hence hold more inevitable assets and control a more significant share of financial wealth. Therefore, opting for women as investment managers in real estate family offices will help those widowed females unsatisfied with their male investors; some reason, opt for a female investment manager and discuss their problems and the measures that can be taken with the investment more openly.
Generate Better Returns by real estate family offices
A research team at the University of California conducted a study based on 35’000 brokerage accounts for six years in the early 1990s. The final results of this study concluded that women tend to make better returns than their male counterparts. The study showed that a female investment manager generated one percentage point more on average compared to their male colleagues.
If this wasn’t enough, the financial slump which hit the finance market back between 2007-2009 also showed that women investors did better in generating more revenue in percentage and outdoing their male counterparts.
Based on these statistics, it also doesn’t come as surprising that one of the most successful investors in finance history is a woman. Her name is Herrita Green. She turned bequests of under US$100m into a fortune estimated at up to US$4.36bn in today’s money by the time she died in 1916. This makes her not only one of the most successful investors in the world. But also one of the wealthiest women to ever live in the United States.
Hence, this is proof that for a long, women have been proven to be better investors than their Y-chromosome-possessing colleagues; however, they were given lesser chances to show their potential.
Women are Less Afraid of Long-Term Commitment than Men
Not all investments provide short-term gains, but many require a longer waiting period to show significant outcomes. In such a regard, females are more likely to commit to long-term goals as compared to men. This is because they are less likely to make commitments.
On the other hand, women are less likely to panic in states where their investments face downfalls. They let the decline period surpass, and when investment sees a slight deviation towards the upper curve. They take quick measures and opt for the smartest decision they can take during this period. Moreover, women do not second guess many initial choices because they are sure to do all preliminary research beforehand too.
Women are stepping up and surpassing barriers in walks of life. While the finance and banking industry has long been a forte where women were observe in significantly fewer numbers than men, times have changed. Today, women manage investments in family offices that invest in real estate and do a great job.
We hope this article help you to understand why women are more likely to be hire by family office real estate investors. If you are a woman who is fearful to take a step towards breaking recruitment stereotypes or is scare to enter a male-dominated society, this is your sign to do it.