Investing has traditionally been considered a male-dominated
arena, but recent studies have suggested that women may actually be better investors than men. While
gender should not be used to make general statements, there is evidence to suggest that women may have
some unique qualities that give them an advantage in the world of investing. According to a 2022 Outlook India
report, about 60 per cent women had mutual
fund investments compared to 55 per cent men. For fixed deposits too, the numbers went in favour of
women (54 per cent) compared to 53 per cent for men.
Confidence: Confidence is good but
overconfidence
kills
One of the key
reasons why women may be better investors is that they make decisions with a lot more caution than men.
Overconfidence can lead to poor investment decisions and can cause investors to take unnecessary risks.
Women, on the other hand, tend to be more cautious and thoughtful in their investment decisions.
Long-Term Focus: Holding for a longer time
frame mostly
pays off
Another
advantage that women may have over men when it comes to investing is their -patience. Women tend to take
a more prudent approach to investing, with a focus on long-term growth and stability. This means that
women are less likely to be worried by short-term market movements and are more likely to hold onto
their investments for the long term. This approach may lead to more stable investment returns and can
help investors avoid unnecessary risks.
Better Risk Management: Being cautious
helps avoid
unwanted risk
Women are
also known to be better risk managers than men. While men tend to take more risks in their investment
decisions, women are more likely to take calculated risks and manage their investments more carefully.
This approach can help investors avoid costly mistakes and may improve returns.
Both fear and greed are enemies, staying
balanced
helps
Emotional
decision-making can lead to poor investment decisions and can cause investors to buy or sell at the
wrong times. Women, on the other hand, tend to be more level-headed and analytical in their investment
decisions. This can help them make better decisions.
Conclusion:
While it would be unfair to say that women are universally
better investors than men, there is compelling evidence to suggest that they may possess some unique
qualities that give them an advantage in the world of investing. Women tend to be more focused on the
long-term, better at risk management, and more patient in their investment decisions. These qualities
can lead to more stable investment returns and can help investors avoid costly mistakes. It is possible
that the guidelines she uses to maintain work-life balance and run her household efficiently help her to
make better investment decisions as well. Regardless of gender, the key to successful investing is to
take a thoughtful and planned approach to investment decisions, while being aware of the risks
involved.
As an individual, whether man or woman, approaching investments
through mutual funds is a safer bet compared to doing it alone. A systematic approach to mutual fund
investments with an early start and consistency has a high chance of yielding decent returns over the
long term. When you invest through a mutual fund, you place your trust in experienced fund managers who
may be able to manage market conditions better and may generate better returns. Irrespective of gender,
anyone who starts early and invests regularly may be able to generate reasonable returns over the long
term.
An
investor education initiative by ICICI Prudential Mutual Fund
Visit www.icicipruamc.com/note to know more about the process to
complete
a one-time Know Your Customer (KYC)requirement to invest in Mutual Funds. Investors should only deal with
registered Mutual Funds, details of
which can be verified on the SEBI website (http://www.sebi.gov.in/intermediaries.html). For
any queries, complaints &
grievance redressal, investors may reach out to the AMCs and / or Investor Relations Officers. Additionally,
investors may also lodge complaints on https://scores.gov.in if they are
unsatisfied with the resolutions given by
AMCs. SCORES portal facilitates you to lodge your complaint online with SEBI and subsequently view its
status.(http://www.icicipruamc.com/note)
(http://www.sebi.gov.in/intermediaries.html) (https://scores.gov.in/)
Mutual Fund investments are
subject to market
risks, read all scheme related documents carefully.
