Women tend to be Gods that create which is very disciplined and systematic. And I suppose, that’s the reason why young women investors found to be leading men for investing in SIP. Let’s talk about numbers.
Women investors presumably start first SIP in their 20s as compared to men. A survey conducted splashes that 33% of women respondents started SIP before turning 30 whereas in men, the figure is 22%. Overall, 24% investors started in their 20s. 35% investors started SIP at the age of 30-39. 66% investors’ initial amount of monthly SIP is less than Rs 5,000. Only 8% stated that their first SIP amount was over Rs 10,000.
The other important thing that came out to be important was that the majority of investors are willing to continue SIP for the long term. Out of the total, 55% women and 57% men confirmed to hold SIP for more than 10 years. The survey shows that 85% investors put money in mutual funds through multiple SIPs. The ratio increases in the 36-45 age group. 91% of the respondents in this age group have SIPs in multiple accounts. The ratio is least for investors in the 20-25 age group. Only 68% investors in this age group have multiple SIP accounts.
75% investors start different SIPs for different goals. The survey shows 75% investors believe in starting different SIPs for different goals. However, almost 48% of first time SIP investors accepted that they started SIP without any specific goal in mind.
Over the last few years, the women investors earned good returns and the grand reason behind this is the showbiz of patience when it comes to doing SIPs in mutual funds, as per a survey conducted by ETMoney. We have seen that women earn approximately 10% more returns if compared in mutual fund investment portfolios.
The benefits don’t end here, not just generating better returns, women are better at maximizing tax benefits as well. 15% of the total investment portfolio is invested in ELSS funds, against 12% by men. Not to forget that women are more disciplined investors than men. The study shows that women are 13% more regular than men in continuity of their SIPs.
The difference has been amplified every year since 2018. The study indicates that women have the tendency to change their investment strategy with time & age. 74% of under-30 women’s investment portfolio is in equity. The women’s portfolio over the age of 50 reflects completely opposite. On an average they have invested 79% of their money in debt. The findings shout-out to the fact that young women investors in the age group of 18-25 years are 3x more likely to choose a high-risk, high-return asset class over traditional investment options. Mutual funds have emerged as the most preferred asset class for women & hence they excel.