Are women better investors? It sure looks that way.

The University of California at Davis (UC-Davis) found that women's portfolios gained 1.4 percent more than men's portfolios in a study that spanned from 1991 to 1997. In fact, single women did even better than single men, gaining 2.3 percent greater returns on their portfolios.

The National Association of Investors Corporation also found women excelled over men in investing. Their 10-year study showed all-female investment clubs outpaced all-male investment clubs by racking up 23.8 percent average compounded lifetime annual returns compared to 19.2 percent for male clubs.

Why is this so? What can we learn from these statistics to secure our financial futures?

From reviewing the reasons for these successes, it appears there are some key aspects of women's investing behaviours that have in the past been looked at as negatives, but may actually be positives when used to our benefit:

• Women look at more than the numbers.

  They make investment decisions based on personal life experiences. In choosing an investment they consider the quality of the products, as well as their personal buying experiences with the company. Previously this was thought of as being too emotional, but it helps to pick companies with strong, long-term futures.

• Women test company ethics.

  Women by nature usually tend to invest in companies that match their social and ethical beliefs. This too fell in the 'too emotional' range, but these companies tend to face fewer lawsuits and better long-term prospects.

• Women take less risks, they don't trade their equity holdings as often and save on transaction costs.

• Women have less self-confidence.

  They are less likely to act on a hot tip and tend to carefully research their investment choices.

Not according to the UC-Davis study. During the six years studied, men's stock picks returned 18.7 percent versus 18.6 percent for women, which is not statistically significant.

The reason women did better than men was because of portfolio turnover. Men traded 45 percent more than women. Transaction fees and capital gains taxes ate up their gains.

Do you agree? Are women better at investing than men? Leave a comment below...

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