Women investors have better returns than men

A recent study by American investment group Fidelity revealed that women make more money than men in investments. According to the 2021 “Women and Investing Study” report, female investors had a 0.4 percentage point higher return than men. In this sense, the study analyzed 5.2 million portfolios between January 2011 and December 2020. Thus, it is indicated that among 5 million clients, in the last 10 years, women had a return 0.4% higher than men. men.

There are several reasons for the study result. For example, women make fewer short-term moves or trades in their investments. There are 2 consequences to this: it is possible to recover any losses without prejudice, and the fee costs are lower. This way, overall performance is not compromised.

Lorna Kapusta, responsible for client and investor engagement at Fidelity, reflects on the subject. In an interview with the CNBC news website, Lorna comments that the result adds to the fact that women tend to invest more consistently. This means they don’t try to find the best time to enter and exit a role, something men do more often.

Women investors and the lack of confidence

On the other hand, only a third of women actually see themselves as female investors. The fact is the result of a study carried out in July by the independent analysis company CMI Research. Thus, the survey interviewed 2,400 Americans, 1,200 women and 1,200 men. They were all over 21 years old, and earned more than $50,000 a year. In addition, they are also contributing to a pension plan. According to the survey, only 4 out of 10 women were comfortable with their knowledge in the field.

In this sense, it is believed that the real problem is the fact that women think they need to know more to invest. Self-confidence depends on knowledge. On the other hand, men take more risks, even though they don’t know the area as well. Kapusta, however, adds: “Women doubt themselves. But research shows that when they invest, they do a lot of good.” Lorna’s tip, then, is that women investors start talking more about finances with people close to them, to feel more comfortable.

Search results

On the topic of women investors, the results of the CMI Research survey prove the lack of female confidence. In this sense, 58% do not feel confident about their ability to save in the long term, including retirement. 67% do not feel confident making their own financial decisions. 65% do not feel confident that their applications for goals other than retirement are correct. And finally, 86% say they don’t know much about saving and investing.

When it comes to managing day-to-day finances at home and with your family, the reality is different:

• 75% feel confident monitoring expenses and income;
• 68% feel confident managing the budget;
• 54% feel confident about making larger purchases.

On the other hand, such confidence decreases when it comes to long-term planning and investments. The numbers show that 18% feel confident in selecting investments that align with their goals. 29% feel confident investing in the short and medium term. And finally, 31% feel confident planning their financial needs for retirement. The numbers, however, evolve every day. In the survey, 67% of women invest beyond their retirement plan. The number is 44% higher than in 2018. Among them:

• 71% are from the millennial generation (25 to 40 years old);
• 67% of Generation X (41 to 56 years old);
• 62% of the Boomer Generation (57 to 75 years old).

What takes away the confidence of women investors?

According to the survey, 64% of respondents would like to be more active in their finances and investment decisions. However, certain issues prevent them from moving forward. Thus, 70% say that, to invest, they need to study more about how to choose shares. On the other hand, 65% say they could invest if they had a better idea of ​​what to do. In this sense, the study points out some steps that women investors can take to feel more confident. Are they:

• Start early;
• Take time to learn more about the topic of personal finance;
• Have a long-term view on investments;
• Consistently invest a portion of your salary;
• Select different types of investments, such as funds and ETFs.

Likewise, a very important step to gaining more confidence is putting together a financial plan. In the survey, 71% of women who decided to do one felt more confident.