A new study called “Sex Matters: Gender and Mutual Funds,” conducted at the University of Cologne in Germany states that men and women differ on the manner they manage mutual funds.



The study found that male fund managers are more likely to go for more aggressive bets in comparison to women. And they have the greater tendency to follow the ’style drift’ where in they tend to change the principal investment pattern over a period of time.



On the other hand as women managed their funds more conservatively, so the raw returns made by women fund managers were pretty less in comparison to those of men.

Despite the fact mentioned above, after taking the risk factor into consideration both the counterparts came out with equal performance, women doing better in some cases.



An interesting thing to note here is that for long term investments, researchers found the women managed funds to perform better. So the investors who look forward to construct a diversified portfolio should go in for funds managed by women managers.



Via: New York Times