I know that I am exploring uncharted waters here but it's an interesting topic for a debate nonetheless. There are various theories about which gender is a better investor and a few suggest that women have better IQ than men because they use both hemispheres of the brain simultaneously.Digital Look, a financial website did the study in which they found out that women balance risk in a portfolio better. On average, a portfolio managed by a women in the study gave returns of 17% whereas those managed by men gave 11%. As compared to these two, the Index gave a return of 12%, which means that the women outperformed the Index by 5%. The survey analyzed 1,00,000 portfolios and saw that men invested based on "fads" whereas women diversified the risk by investing in different classes of stocks.
Another survey by Merrill Lynch which interviewed 500 men and 500 women found that women make fewer mistakes in investing than men. But the study also found that they make the same mistakes and that accuracy of investments depended on their understanding of the market fundamentals and experience.
1 comment:
I have also read that the reason women are better investors is because unlike me they are not over confident.. If a male investor provides better returns in comparison to the index, he is lured and believes that he is bound to make greater returns the next time as well.. women being more risk averse always sticks to the rules of investing irrespective of the past retuns.
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