TomorrowMakers

Over the last 3-4 years, women’s portfolios have outperformed those of men.

How women’s investment portfolios are changing – for the better!

The difference in how men and women think and act spills onto their investment portfolio as well. The variance in behaviour and financial prowess can have a significant impact on achieving long-term financial goals. Over the last few years, women have started taking charge of their money and the results are there to see.

Focus on savings

Almost 44% of women invest more than 20% of their income, with a major focus towards family and travel for those aged 18–35, as per a Groww survey. Higher studies and early retirement are other major milestones.

Making the right decisions

As per a Nielson survey in 2019, 33% of women made independent financial decisions. Today about 50% of women are taking money matters into their own hands. They are consuming more financial information, are more open to seeking investment guidance, and spend significantly more time before making any decision.

Related: Risks you must watch out for while investing

A disciplined approach

Women tend to be more disciplined with their investment program, whether it comes to maintaining asset allocation or sticking to a Systematic Investment Plan (SIP). With this financial resolve, women are more likely to meet their long-term financial goals within expected timelines.

Awareness of risk appetite

There is a notable shift in awareness of one’s risk appetite, especially among younger women. They now more open to exploring equity and equity-based assets for generating long-term wealth. As per an ET Money survey, portfolios of women under 30 have an average of 74% exposure to equity. This is down to 61% and 53% for age groups 30-40 and 40-50 respectively, which sits pretty well with age-based asset allocation.

Related: Women make safe investors... but is this always a good thing?

Portfolio diversification

Women tend to choose long-term options over short-term speculative assets. Traditional options such as bank deposits and PPF are still popular investment choices. Gold is an evergreen option that finds place in women’s portfolios across all ages and income groups. Those above the age of 35 and with higher income levels are also more likely to invest in real estate.

Many women also actively invest in insurance and tax-saving instruments. As per the ET Money survey, an average of 15% of women’s portfolios were allocated towards ELSS, compared to 12% of men’s.

Related: What investment options can create a regular income for women?

Greater RoI 

For each year between 2017 and 2020, women have generated better returns on their portfolio compared to male investors. Even with the volatility and panic caused by the pandemic in 2020, women did better with an average of 14% RoI as compared to the 11% earned by men. Active or Passive Investing: What's your choice?

The difference in how men and women think and act spills onto their investment portfolio as well. The variance in behaviour and financial prowess can have a significant impact on achieving long-term financial goals. Over the last few years, women have started taking charge of their money and the results are there to see.

Focus on savings

Almost 44% of women invest more than 20% of their income, with a major focus towards family and travel for those aged 18–35, as per a Groww survey. Higher studies and early retirement are other major milestones.

Making the right decisions

As per a Nielson survey in 2019, 33% of women made independent financial decisions. Today about 50% of women are taking money matters into their own hands. They are consuming more financial information, are more open to seeking investment guidance, and spend significantly more time before making any decision.

Related: Risks you must watch out for while investing

A disciplined approach

Women tend to be more disciplined with their investment program, whether it comes to maintaining asset allocation or sticking to a Systematic Investment Plan (SIP). With this financial resolve, women are more likely to meet their long-term financial goals within expected timelines.

Awareness of risk appetite

There is a notable shift in awareness of one’s risk appetite, especially among younger women. They now more open to exploring equity and equity-based assets for generating long-term wealth. As per an ET Money survey, portfolios of women under 30 have an average of 74% exposure to equity. This is down to 61% and 53% for age groups 30-40 and 40-50 respectively, which sits pretty well with age-based asset allocation.

Related: Women make safe investors... but is this always a good thing?

Portfolio diversification

Women tend to choose long-term options over short-term speculative assets. Traditional options such as bank deposits and PPF are still popular investment choices. Gold is an evergreen option that finds place in women’s portfolios across all ages and income groups. Those above the age of 35 and with higher income levels are also more likely to invest in real estate.

Many women also actively invest in insurance and tax-saving instruments. As per the ET Money survey, an average of 15% of women’s portfolios were allocated towards ELSS, compared to 12% of men’s.

Related: What investment options can create a regular income for women?

Greater RoI 

For each year between 2017 and 2020, women have generated better returns on their portfolio compared to male investors. Even with the volatility and panic caused by the pandemic in 2020, women did better with an average of 14% RoI as compared to the 11% earned by men. Active or Passive Investing: What's your choice?