Why are women investors likely to earn more returns than men investors in the long run?

Modern women now started taking interest in handling their finances. They are seriously involved in the household’s overall financial planning process too. It is a known fact women are deeply dedicated to the work which they take up. Once women decided to handle their finances on their own they are very sincere to follow the investment process required to achieve their financial goals.

When we compare the behavior of women and men investors many will be surprised to know that women investors’ long-term returns are more compared to men. This happens because of the inherent nature of women to stick with the task they choose till it is achieved. It is being observed that

  • Women chose the financial products carefully,
  • They do not get easily lured by the short-term returns,
  • They do not take blind risks as well as think of the long term and keep on investing with discipline and focus.

All these factors lead to better long-term returns as there is less churning of portfolio and they are always keep invested irrespective of market level. Women handle human emotions such as Greed and Fear better than men. INACTION leads to more wealth creation in the long term is what women know better than men.

The basic thumb rule of personal finance is that it is personal and it should always be personalized. But most of the time women get influenced by the choices of our friends, colleagues, relatives, or even unknown people whom we found on social media.

This tendency is more in naïve investors as well women investors who are greatly influenced by their father’s, brother’s, or husband’s investment style. This is so because they may lack knowledge and confidence to craft their own investment style based on their preferences, risk-taking ability, and the financial goals which they want to pursue.

There is a basic difference in the nature of a man and woman. So women should refrain from blindly following men’s investment style without knowing its pros n cons.

Always remember: The investment process starts with identifying our financial goals and selecting suitable products to achieve those keeping in mind the term to those goals and your risk-taking ability.

I am sharing different Short and long-term investment options.. Go through it .. Check out which are suitable for you..

Most men prefer to take more risks by dealing in shares and F&O and love to churn their portfolios frequently to book short-term profits. But this way is super risky as well as such products can not be mapped with your financial goals.

So as a woman if you are risk-averse as well as believe in long-term wealth creation in that case select a good index fund along with a good flexicap fund for your long-term goals. No need to have small caps if you can not digest its volatility.

For short-term goals stick with Liquid and ultra short-term debt funds. No need to experiment with credit risk funds or short/long term debt funds as they carry higher credit risk.

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