Description:
Using a unique data set of 6,556 investment advisory clients of a large European wealth management institution we reveal how wealth trumps gender in determining women’s risk preferences. While overall women’s portfolios contain less equity exposure and produce lower returns compared to men’s, women with less than EUR200,000 invested hold riskier portfolios, pay higher advisory fees and achieve greater returns compared to men. Across both genders these smaller investors absorb more risk and have higher returning portfolios than their wealthier peers