Why Women Make Better Investors?

CA Aaditya Chhajed , Last updated: 01 July 2020  
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“If you’re not staying on top of your money, you are putting your financial well-being at risk.” – Suze Orman, American financial advisor, author, and podcast host.

Getting more education, pursuing a career, combining employment with family life – these are just some factors that have enabled women to enjoy greater financial independence, earn more, and save more as a result.

In my list of family, friends, and clients, women investors comprise not more than ten percent. However, on average, due to some positive traits, the results of their investments beat that of men. 

Below mentioned are some of the traits. Let's reinforce them! 

1. Stick to the comprehensive financial plan

In my experience, once you set the right return expectations, educate women on risks involved, explicitly mention them in the investment policy statement, they stick to the same financial plan unless the goals change.

Traditionally, women have cult towards physical gold and real estate as preferred investments.

In my experience, millennial women prefer goals-based investing. They prefer physical gold and real estate only for consumption purposes. They prefer a combination of gold ETFs, debt, and equity mutual funds in order to meet goals.

Why Women Make Better Investors

2. Less hindrance

Once satisfied with the thought process, they do not second guess the financial advisor. 
Most men jump straight in and try to speculate the investment. On the contrary, women stay patient and understand investing is a long term game. 

3. Less ego

Very often, men dig dipper into the impact of various macro-economic developments instead of focussing on goals and things they can control. Women do not shy away from asking questions unless and until they are satisfied. In my experience, millennial women patiently hear, no matter how unconventional your strategy is. 

 

4. A-Z Advisory

Once the trust is established, they'll ask for advisory right from the opinion on their financial planning and wealth management journey, opening a bank account including the impact of various income tax, and so on.

5. Better risk managers

Women tend to accept more risks once they understand it. They are very comfortable dealing with the volatility. However, educating them on risks involved and return expectations is paramount.

 

Conclusion:

I firmly believe in times to come, more and more women across the globe and in India will venture beyond savings account, fixed deposits, recurring deposits, ULIPs (a combination of insurance and investments), physical gold and even real estate for that matter to achieve their goals in a meaningful way.

You may contact me in case you need to ask or tell me something. I am waiting to hear from you.

Stay home! Stay safe!
Thank you very much for your time!

The author can also be reached at chhajedaaditya@gmail.com

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CA Aaditya Chhajed
(Financial Investments)
Category Shares & Stock   Report

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