For MintGenie / India
As we commemorate another Independence Day, let us also recognize the strides women are making in moulding their own financial destinies. Just as our nation fought for freedom, women are breaking barriers in wealth creation and investment. In the spirit of this occasion, we look into the incredible journey of women who are redefining trade psychology, guiding financial ships, and advocating for a future where financial freedom knows no bounds.
The phrase“lady luck” often resonates in trading circles, yet wealth managers have encountered challenges in encouraging women to engage in investment markets. A disparity exists between women’s inclination to embrace risk and their preference for certainty. The perception of risk in markets, akin to the domain of gamblers, acts as a barrier.
Additionally, the prospect of losses and the subsequent conversations with spouses can be an uncomfortable experience. Perhaps men get more leeway in this conversation from their spouses than women are expected to get. Nonetheless, it’s crucial to acknowledge that with a grasp of risks and ample time, listed markets provide a straightforward avenue for wealth accumulation.
Navigating female investment and influence
While it is true that many women have asset accounts, this is frequently influenced by a male family member, typically the spouse. While women have acquired independence in many aspects of life, most still lack the ability to make independent financial decisions. However, numerous studies indicate that the overconfidence of male investors causes women to outperform men. Yet, there are a number of female fund administrators in our Indian Asset Management Companies (AMCs).
Deliberate decision-making and conservative strategies
Observations reveal that women investors tend to exhibit a greater level of restraint once they comprehend the associated risks. This contrasts with male investors, who often seek portfolio volatility as a gauge of their investment advisor’s prowess. Reiterating that markets typically outperform fixed deposits over a 20-year period as long as there is real GDP growth. There is no 20-year period in history where fixed deposits have outperformed stock market indices.
