Women who invest their money are reportedly achieving slightly higher long-term returns than men, according to new analysis. Yet, a stark contrast exists in participation rates: only about a quarter of women in the UK engage in investing, compared to roughly 40% of men. Teleri Evans, a civil servant from Cardiff, is a prime example; she managed to save aggressively while living with her mum and recently used her investments as a deposit for her first home with her partner.
Despite only 26% of UK women investing—this figure dips to 23% among those under 45—41% of men are engaged in investment activities, holding steady at 40% for the younger demographic. So, what’s holding women back? Experts suggest that cultural factors play a significant role. Historically, men have dominated family investment decisions, and women have not held a significant share of wealth—though this is changing, as Teleri notes, especially among her friends.
The difference in long-term returns can be traced back to trading habits. Data from Barclays indicates that women trade about half as frequently as their male counterparts. This tendency may be linked to women being more patient and risk-averse, as highlighted by Joanna Floyd, a business psychologist at The Work Psychologists in London. Women not only take a more cautious approach to investing but also exhibit this behavior in other financial decisions, often opting for certainty when faced with potential risks.
When it comes to investment strategies, women tend to be more deliberate and cautious. They appear to invest in a wider range of companies, with Anna Macdonald, investment strategy director at financial services firm Hargreaves Lansdown, affirming that women carefully select their investment targets. Jemma Slingo, a pensions and investment specialist at Fidelity International, emphasizes that it’s crucial for the investment industry to make investing feel more accessible, relevant, and aligned with individual goals and values.
This shift could significantly benefit women in the long run. Are you affected by issues covered in this story?
Kaynak: Orijinal Haber