Trade like a woman – Nedbank offers insights into female investment success

Investing is key for women to gain financial freedom and build long-term wealth. While women have historically been underrepresented in the investment arena, they are now taking significant strides towards closing the financial gap – not just in terms of earnings but also by investing wisely.

The recent #JSESheInvests2024 event highlighted this shift, emphasising that by taking control of their investments, women can grow their wealth and achieve their financial goals. Nandi Qubeka, Head of Research and Fund Management at Nedbank Private Wealth, shared valuable insights during a panel discussion, offering a roadmap for women seeking to build their financial futures through disciplined investing.

Set clear goals

Qubeka emphasised the importance of having clear investment goals, noting that they should serve as a North Star that guides every financial decision. 'Knowing their why urges women to be specific about what they want to achieve with their investments,' she advises. 'This clarity helps in differentiating between short- and long-term goals. By setting clear objectives, women can stay focused and motivated, making it easier to navigate the complexities of the investment world.'

Trade like a woman

'While women are still slightly less engaged in the stock market than men, research shows that those women who do invest often outperform their male counterparts,' Qubeka says. She pointed out that women's natural investment tendencies, like being more risk-averse, trading less frequently and being more strategic, can be highly advantageous. 'Women tend to be more considered and less impulsive,' she says, 'and these traits can lead to better long-term investment outcomes.' However, she also cautions against letting risk aversion become a barrier to investing. 'Uncertainty is a part of investing,' she notes, 'but with the right advice, women can learn to embrace it and make it work to their advantage.'

Build a well-diversified portfolio

Diversification is key to managing investment risk. Qubeka explained that a diversified portfolio should include a balanced mix of asset classes and geographies. 'You'll know you have a well-diversified portfolio if, on any given day, some components of your portfolio are up while others are down; but overall, the performance trend is upwards,' she says. This balanced approach not only helps to mitigate risk but also positions investors to benefit from growth opportunities across different markets and sectors.

Use a trusted stockbroking platform

Choosing the right stockbroking platform and partnering with experienced and trusted advisers are crucial for successful investing. Qubeka cautioned against relying on advice from friends, family or influencers instead of entrusting your investment to those who have made investment their career, like investment specialists in Nedbank. 'Nedbank Stockbroking offers a range of investment approaches tailored to different levels of experience and preferences,' she explains. 'So, whether you're a novice investor looking for a managed solution or an experienced wealth manager seeking expert advice, Nedbank's platform gives you the tools and support you need to make informed investment decisions.'

Watch out for costs

Investment costs can significantly impact long-term returns, and Qubeka urged women to be mindful of all associated fees. 'Beyond the obvious platform fees,' she pointed out, 'there are often hidden costs, such as brokerage fees and asset manager charges, which can eat into returns.'

'Familiarise yourself with the total cost of investing,' she advises, stressing the importance of understanding these expenses upfront.

'Nedbank Stockbroking offers a transparent fee structure, with world-class online share trading available for just R55 per month, making it accessible and cost-effective for a wide range of investors,' she highlights.

Start now

One of the most critical pieces of advice Qubeka shared was the importance of starting sooner rather than later. 'If you wait to have a certain amount of money before you start investing, you'll be waiting forever,' she warns. 'The key is to be deliberate and take that first step, no matter how small your initial investment may be.'

'Disciplined investing for women is not just about growing wealth – it's about empowering themselves to take control of their financial futures,' Qubeka emphasises. 'And with the tools and expert advice often available from female financial experts who are on this journey themselves, it is possible for South Africa's women to achieve financial independence and build a legacy of long-term growth.'