Despite the widespread notion that women are more cautious investors, a new study says affluent women actually like to take more risk—as long as they fully understand the trades.
A study from Spectrem Group of women who earn more than $200,000 a year found that more than half are willing to take "a significant investment risk" to earn higher returns. That compares with about a third of the broader population of affluent investors who are willing to take significant risks.
Women are far more likely to use alternative investments, commodities and real estate to boost portfolio returns. They are three times more likely to invest in hedge funds, venture capital and private equity and twice as likely to invest in commodities and precious metals.
But that doesn't mean women are bigger risk-takers. The study found that affluent women investors tend to be more knowledgeable about financial products than most investors. Three-quarters of high-income women say they are "very knowledgeable" or "fairly knowledgeable" about investing, slightly more than the overall affluent population. And 93 percent are college grads, compared with 73 percent of the broader affluent population.