FinaMetrica has this morning published data which it said highlights men’s hunger for risk is not much greater than women’s.

Paul Resnik, co-founder of investment suitability specialist FinaMetrica, said although women are generally less tolerant of risk than men with investing – but the difference is less than some might think.
The firm’s findings suggested the average risk tolerance level of males is 53.44, compared to 46.82 for females. Within couples, the data is similar; with scores of 52.75 for men and 47.26 for women. This actually puts men and women in the same risk group on average, although individuals may vary widely in their risk tolerance levels.
Mr Resnik said: “Several studies over the years of have highlighted males’ risk taking behaviour and their greater appetite to take on risk.

“Researchers often point to evolutionary reasons: aggressive males made more successful hunters and gatherers, which enabled them to flourish while passive males did not.
“Whatever the reason, it is important to note that, in investment terms at least, the difference in male and female risk appetite isn’t as great as some people might think. Both men and women on average sit in the same risk group, so what we are seeing are slight differences.
“However, individually men and women may vary widely in their risk tolerance levels, so before they make financial decisions, each person should have their risk tolerance objectively measured.”

Mr Resnik said: “Ultimately, how a person feels about financial risk will affect which type of investments suit their needs and those with which they can sleep well at night. It’s also very important that financial advisors don’t superimpose their own risk preferences onto clients, which can happen if advisors don’t scientifically test a client’s risk tolerance in an objective way.
“A good risk tolerance test will take as little as 10 minutes to complete yet the benefits are numerous. People are far more likely to stick to their financial plan through market highs and lows if they are comfortable with the risk levels they have taken and understand at the outset their financial plan, and the risks it entails, because they have been fully informed by their advisor.”