Anything you can do, I can do better.
I can do anything better than you……

This song from 1946 Broadway musical perfectly explains the battle of the sexes. As opposite as the two genders are, both have different approach to everything, including investments. While men invest fearlessly, women are more conservative in their approach. However, women have some key qualities required for an investor.

Women are savers
Traditionally, ladies of the house know basic tactics to save money systematically, irrespective of whether they earn or not. They make it a point to save substantially from the household budget. Bargaining where possible and looking for cheaper yet quality alternatives is their modus operandi. However, the saved money goes directly into the lockers or someplace safe. When they find out that it is possible to increase the worth of their money, they would leave no stone unturned.

Less risk takers
The basic mantra of investing is high risk-high returns. But, women are generally low-risk takers. They prefer to play safe. They are more comfortable earning slightly less returns than losing money altogether. Although, a low risk appetite, with proper diversification of investments women tend to get better returns. Since, women do not want to put their money at risk, equity holds a minor share in the portfolio. They focus on moderate risk vehicles like mutual fund investment and other schemes for women. As per a study, 27.72% of women have invested in mutual funds with better return and safety being the main investment motive.^[1]

Practical approach to financial planning
Women begin their financial planning at various levels and life stages. It starts from managing pocket money leading up to managing house budget. They have this inherent desire to save pennies as and when possible. Thus, when women do begin earning, the natural instinct plays a vital role. They will save first, and then prioritise their spending for an opportunity to save more. They are enthusiastic and want to plan finances for the future. With proper exposure, this habit of saving gets transformed into investing.

Patient and long-term investors
The impatience in men makes them prefer trading over investing. The multiple fees eat a lot of their saved money. Even if men invest in long-term vehicles, they have an urge to track it regularly. Thus, the short-term market volatility has a huge impact on investment decisions.

On the other hand, women are patient investors. Once they know the basics of investing, they make up their mind to stay put when the market goes down. With the help of professional management, mutual fund schemes allow you to diversify. Besides, the minimum investment requirement, as low as Rs. 500 a month, makes it ideal for women with low or no income source.

Informed decision-making
Any investor wants to have all the information at hand and understand every aspect thoroughly before making a decision. In case, they have incomplete information, they might as well let go an opportunity. In a way, they want to take calculated risk. The natural networking skills of women combined with inquisitiveness serves as a great source of information. This helps in diluting the risk.

Bottom-line
Some of the qualities of a great investor come naturally to women. And they do not hesitate to fill the knowledge gap as well. Irrespective of the gender, anyone can be a good investor. It just requires focus, gaining knowledge, being patient and making right decisions.

^[1] http://www.iosrjournals.org/iosr-jhss/papers/Vol.%2021%20Issue7/Version-7/D2107072328.pdf