Various studies show that women invest better than men because they study hard and take less risks.
There is a social stereotype that women don’t know how to invest. Sometimes, women themselves are less confident in their abilities. They can save better but are not so eager to invest because they do not know where and how to do it.
1. Women make better profits
According to a survey by Indian investment consulting firm, ET Money published in March 2021, female investors generated better returns than men in the survey from 2017 to 2020. During the pandemic 2020, The rate of return for female investors is 14%, while that of men is 11%. Not only in India, even in the US and UK, women do better than men.
According to a 10-year study on Women and Investing in 2021 by multinational investment group Fidelity, women’s returns are higher than men’s.
2. Women are better at investing by nature
Women’s success is attributed to behavioral traits. Compared to men, women are more risk averse, trade less often, study harder, are more disciplined, and are not too confident.
A University of California-Berkley analysis of men and women’s common stock investments from more than 35,000 households (1991-1997) found that men trade 45 times more often than women. %, but women outperform men by 0.94% per year.
3. They are more likely to achieve their goals
If the wife invests, the husband can rest assured that all their financial goals will be met as women not only have a results-based approach but also have a long-term vision. They focus on financial goals within a certain time frame, instead of enjoying the same thrill and adventure as men.
4. Financial Empowerment
One of the most important reasons women should start investing is to help them become more involved and knowledgeable about family finances. In the event of a husband’s death or illness, a wife will not only be able to secure her own financial future, but also that of her children, avoiding other risks.
Bao Nhien (Follow Economic Times)