Although fewer females are in the stockmarket, numerous studies suggest they outperform on returns
Plenty of articles have been written bemoaning the fact that women are less likely to invest in the stock market than men. However, several recent studies suggest that women who do take the plunge outperform men when it comes to investment returns.
So what is the evidence — and what exactly are female investors doing to gain the edge over men?
Warwick Business School conducted a study of 2,800 UK men and women investing with Barclays’ Smart Investor, tracking their performance over three years. Not only did the women that were examined outperform the FTSE 100 over the time period, they also achieved better returns than their male counterparts.
The men in Warwick’s study managed an average annual return 0.14 per cent higher than the FTSE 100, but women outperformed the benchmark by 1.94 per cent, beating men by 1.8 per cent.
A separate study by Hargreaves Lansdown, the UK’s biggest consumer investment platform, also found that women investors had the edge, returning on average 0.81 per cent more than men over a three-year period. Hargreaves points out that if this pattern were to continue for 30 years, the average woman would end up with a portfolio worth 25 per cent more than the average man.
www.ft.com
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