Bangalore: Gone are the days when men were deemed masters of moolah as recent studies have proved that women are wiser investors than men. Uma Shashikant, of The Economic Times, elaborates this finding and clarifies how this behaviour can be attributed to different risk perception by both genders.

Different risk perception by women and men generate different emotional responses, leading to different investment behaviours. Recent and past research has shown that these psychological differences inherently make women better investors. The first point to be noted here is how women like to be in absolute control. This trait is observed not only at work but also home. Women adore being in control of their environment at all costs. They might take time in doing so but will achieve it somehow. Being in control denotes order and women like order just as much.

The world of investment is full of apprehension, uncertainty and unfamiliarity. These certainly do not project what women would want from any situation. In such situations women behave in a very typical womanly fashion – they get anxious and strained. But these negative outcomes instigate women to fare as better investors. When they are unsure, they exercise caution and invest gingerly. To women, having a safer investment at times is better than facing losses.