What in the World

According to the data, women make higher returns on investments than men. This trend is observed across various demographics and age groups.

The reason behind this disparity lies in the way investors perceive risk and reward. Women tend to be more conservative in their investment decisions, which often results in higher returns for them.

Studies have shown that women's lower risk tolerance can lead to greater gains over time, making it easier for them to achieve long-term financial goals.

However, this advantage is not unique to women. Research has consistently demonstrated that men also tend to outperform their female counterparts in the stock market.

For example, a study by the Securities and Exchange Commission found that women's investments are less likely to result in significant losses, leading to greater gains over time.

Another factor contributing to this disparity is the way investors perceive risk. Women tend to be more cautious when it comes to investing, which often results in higher returns for them.

Despite being less likely to start investing, women often make higher returns than men when they do.

So…why are women often better at investing? And how does it work? BBC business reporter Emer Moreau unpacks the data on how women and men invest differently, what investing is and why it can be risky. We also chat to Viktoriia and Gabriella, two women in their 20s, about why they started investing and how they’re finding it.

Instagram: @bbcwhatintheworld Email: whatintheworld@bbc. co. uk WhatsApp: +44 330 12 33 22 6 Presenter: Iqra Farooq Producers: Chelsea Coates, Emily Horler and Emma-Louise Amanshia Video Producer: Baldeep Chahal Editor: Verity Wilde