Women get better returns on investments than men – Times of India

Women investors were found to be more disciplined than their male counterparts in terms of following rules of investing, a survey by ETMoney has found. From adhering to asset allocation according to their age to sticking to a systematic investment plan (SIP) — women investors beat men. And this eventually helped the women record better returns over four years, the survey found. The results of the survey were released on Monday, which was International Women’s Day.
In each of the years between 2017 and 2020, women as a group on ETMoney had earned better returns compared to male investors. This was true even for 2018, which showed marginally negative returns for both the groups. In 2020 too, the year that tested the mettle of all investors because of the Covid-induced global pandemic, women did better. The survey results showed that in 2020, while women recorded returns of nearly 14%, the male investors earned a little over 11%.

ETMoney found that women were far more determined than men when investing as well. “Once they start an SIP, they tend to stay on the path far more often than men and, as a result, are more likely to meet their goals,” it said. The survey further revealed that women investors use tax-saving options more intelligently than men. An average 15% of women’s portfolio was in equity linked savings schemes (ELSS), which helped them combine tax-saving with wealth-creation, as compared to 12% of men, the survey said.
The survey noted that women investors have a near-optimal asset allocation for their age. The basic formula for investments is that the equity portion’s percentage should be 100 less the age of the investor. So, for a 30-year-old, 70% of the portfolio should be in equities (100-30). The survey found women investors were more likely to adhere to this rule. “This shows their understanding of the risk of each asset class and the importance of asset allocation to have optimal risk-reward mix,” the survey said.