Key facts
- Women investors achieved cumulative returns of 50% over three years, compared to 47% for men, according to Fidelity International analysis.
- Only 26% of UK women invest, with this figure dropping to 23% for those under 45.
- In contrast, 41% of all men invest, with 40% of those under 45 investing.
- Women trade investments approximately half as frequently as men.
- Women tend to invest more broadly across sectors, while men are more likely to focus on technology companies.
Women who invest tend to achieve slightly higher long-term returns than men, according to new analysis. Despite this, a significant gender gap persists in investment participation, with only about a quarter of UK women investing compared to 40% of men.
Teleri Evans, a civil servant from Cardiff, exemplifies successful investing, having saved £40,000 by age 33, with £8,000 attributed to investment returns, which she used for a house deposit. She achieved this by aggressively saving into ISAs, living at her mother's home to maximize contributions.
Studies suggest cultural factors contribute to fewer women investing. Gillian Fleming, co-founder of Mint Ventures, notes that men have historically led family investment decisions and that wealth creation is not a commonly discussed topic among women, though this is changing. Women are also observed to be more 'risk aware' than 'risk adverse,' focusing on broader investments across various sectors rather than solely on high-return technology stocks, as men tend to do.
Fidelity International's analysis found that women's cumulative returns over three years were 50%, compared to 47% for men. This difference may be linked to women trading investments about half as frequently as men, suggesting a more patient approach. Joanna Floyd, a business psychologist, posits that the same cautiousness that keeps women out of the market initially can reward them once they are invested.
Furthermore, women appear more likely to connect their investments with tangible life goals, such as building emergency savings or providing for children, according to Jemma Slingo of Fidelity International. Anna Macdonald from Hargreaves Lansdown suggests that the investment sector needs to improve accessibility and relevance to people's goals and values, which would benefit both women's financial resilience and the UK economy.