Women and investing: Myth versus reality

Myth 1: Women are not confident investors

Not true: Many women already handle household finances (think of them as the CEOs of their households).
Growing numbers: A 2021 study by Fidelity found that 67% of women are now investing outside of their retirement accounts, compared to 44% in 2018.¹

Myth 2: Women are risk averse

Not quite: Women approach risk differently than men. They often prefer making well-informed decisions and may prioritise financial security. This doesn't mean they avoid risk altogether.

Myth 3: Women are financially illiterate

False: Women respond to investment language differently than men. One major obstacle is the often alienating and inaccessible terminology, with 63% finding it off-putting. Many don’t see themselves as ‘investors’ because of this.²

Myth 4: Women lack interest in investments

Wrong again: Women might prioritise other aspects of their life, but it doesn’t mean they lack interest in investing. This myth also implies a lack of confidence which isn’t true for many women. Seeing more women in the investment industry could inspire greater interest over time.

Myth 5: Women lack access to money to invest

Not necessarily: Women often have less accessible money due to lower incomes, secondary earnings, or leaving the workforce for caregiving. However, with the right financial planning and support, women can overcome these challenges and build a strong investment portfolio.

Empowering women in investing

Dispelling these myths is crucial for fostering a more inclusive and equitable investment landscape. Women are not only interested and capable investors, but they also bring unique views and approaches to financial decision-making. By recognising and addressing the barriers women face, such as confidence, risk perception, financial literacy, interest, and accessibility of money, we can empower more women to take control of their financial futures.

Supporting women in their financial journey

As more women engage in investing and see themselves represented in the financial industry, we can expect to see a positive shift towards greater gender diversity and equality. It's time to move beyond outdated stereotypes and support women in their journey towards financial empowerment.

If you’d like to learn how we can help plan for the future you would want, reach out to us today at [email protected] and a member of our team will be back in touch to arrange a free, no obligation consultation.