Indian Stock market has always been fraternity with money involved. Most of the men are doing their jobs and in parallel investing money with fewer prior knowledge of the investments that they are making. It’s difficult to take out time from jobs and study the portfolio of the companies. Trading whereas involves more frequent buying and selling stocks requires more knowledge and patience which makes it more difficult to get involved in trading. Stock market demands planning, calculation and knowledge of investment you are doing. Greatest investor of all time Warren buffet once said “Risk comes from not knowing what you are doing”.
Let’s not deny this fact that in India there are more housewives than working women. Most people don’t want women of their houses to get a job. Reason behind this could be because their families don’t want them to struggle in managing home and job. We know that another reason is that they want the ladies to work in their households only and serve a good quality food and take care of their children. Is that it?
Should this stop them to contribute in their family income?Does this not allow them to raise money for their children’s future?
The answer is NO as it should be.In fact this market needs women investors. Now market has around 73% male investors which means only 27% female investors. Men trade 45 percent more than women. This excessive trading reduces men’s net returns by 2.65 percentage points a year as opposed to 1.72 percentage points for women. List of greatest investors of all time features names John Bogle, Warren Buffet, David Dreman and NO women.
There are significant ways in which men and women differ on financial decisions. First, women investors are inclined to keep a longer picture in their minds and are away from a hurried investment without conducting proper research. Second, women are more likely to ask for directions on investment which subsequently reducing the risks. 64% of women millionaire investors and 82% of high net worth women investors looked for financial advice. In contrast, the majority of men prefer to make financial decisions entirely on their own. Another would be women tend to be more thorough and take time to make their investment. An analysis in Harvard University shows that Women and Men perceive and take risks differently.
Not only because I believe that women can do more productive with their lives rather than staying at home but also because when it comes to investments women can outperform men.
Are women better investors than men?
- Hedge funds run by women returned 9.8% in 2013 while those run by men has returns of 6.13% – A study published in 2014
- From past two years, European firms having the highest ratio of women in power seen a rise of 64%compare to an average of 47% growth seen in other businesses.
- Single women investors outperform single men by 2.3%, while in a group this outperformance was over 4.6% -Seven years course study.
- Women have lower level of testosterones than men do (not a surprise, we know). Newstudy of Biological facts points to the possibility that the same hormones are responsible for herd like risk appetite from men in the Stock markets.
- Women in US hold approximately 30% of global wealth which is $18.4trillion in consumption and are the sole leads of 32% of U.S households which is twice as big as China and India combined.
- A small sample of women managed private equity funds covered net returns of 14.8% in 2012, crushing the Cambridge Associates LLC private equity fund index number of 13.8%.
‘WARREN BUFFET INVESTS LIKE A GIRL’ –An investment book byLouAnn Lofton is based on the assumption that Buffett’s investment practicerepresents a typical female approach of planning, researching, buying value, and holding. When asked to comment on this claim, Buffett without any hesitationhugged his ladylike side.
While fairer sex enjoying several profits from their investing style, there are some weaknesses that they need to be aware of. Since women tend to focus on longer-term goals, they may be allured to classify their money into more than one account in order to keep those goals precise. However, this maydeform allocation strategies if one is not careful. Furthermore, too much caution can be equated with lost opportunity cost or the danger that insufficient risk could inhibit a portfolio’s potential for growth. Asuper conservative portfolio has the danger of longevity and inflation.
Summing it up, the money management is still dominated by men in the investment management industry. Time for change, women! Not only working women but housewives too can take some time out of their routines and can “invest” their time.It’s high time to get educated about Stock Market.Common ladies it’s 21 century do something real with your life. Don’t just sit there at home all day waiting for your husband to come home. Your life is not meant to serve coffee which by the way if not served hot then prepare to hear it from your partner.
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