International Women’s Day is upon us this Saturday 8th March, and it’s the perfect moment to challenge outdated assumptions and shine a light on the real relationship between women and investing.
Women are increasingly taking control of their financial futures and making informed investment decisions that align with their long-term goals. Despite this, societal narratives around money and investing could still be influencing how some of your female clients engage with money. This includes some persistent myths which suggest that women lack confidence or interest in the financial markets, that could be holding some women back from investing their money.
To help you encourage your women clients to take an active role in investing, we’re busting five of these myths and setting out why they couldn’t be further from the truth.
Myth #1: Women are not confident investors
The notion that women lack confidence in investing is not only outdated but simply wrong.
Many women already manage household finances – you can think of them as the Chief Financial Officer of their home. But research also suggests there’s a rising trend in female investors too. New research from Fidelity shows that over 70% of women own investments on the stock market – that’s up 18% since 2023. While these figures also show that 58% of women are likely to say investing intimidates them compared to 45% of men, more than a third (35%) of women already see themselves as an investor.
Myth #2: Women are risk-averse
Women are not inherently risk-averse, they simply approach risk differently.
Studies indicate that women tend to take more disciplined and considered approach to investing. This doesn’t mean female clients will naturally avoid risk altogether, but instead they’ll make informed investment decisions, prioritising long-term financial security over short-term gains.
However, investing preferences are not influenced by gender alone. Each individual has their own investment objectives and capacity for risk, so while one of your clients might want to focus on diversifying their investments, another may have bigger growth ambitions and might be willing to take on more risk.
Myth #3: Women are less financially literate
Let’s be clear, financial literacy is not based on gender.
However, research suggests that women do respond to investment language differently to men. In some cases, this can act as a barrier – a study by the FCA has found that nearly two in every three women find investment terminology inaccessible and off-putting.
The issue is clearly not a lack of capability but rather an industry-wide need to make investment education more inclusive and relatable. When financial concepts are presented in a more engaging and accessible way, women actively participate and make informed investment choices.
Myth #4: Women lack interest in investments
There’s a lingering perception that women are just disengaged from investing, but again this is misleading.
While women may prioritise different financial goals or other aspects their life, this doesn’t mean your female clients are not interested in learning more about investing.
Just like the first myth, this perception also implies that women lack confidence. Part of the challenge is that investing remains a male dominated industry and representation plays a crucial role in building confidence. As more women take on senior roles in the investment industry or share their own investment journeys, it creates a ripple effect, encouraging greater participation and engagement.
Myth #5: Women don’t have access to investable wealth
While women may face unique financial challenges – such as lower average earnings or career breaks for raising children or providing care – this does not mean they lack the ability to invest. Research by BNY Mellon Investment Management actually shows that if women invested as much as men do, they could add more than $3 trillion in extra capital to global investments.
With careful financial planning, women can build strong investment portfolios that are tailored to their needs, and which can help them achieve their financial goals.
Empowering women to invest
Dispelling these five big myths is essential for creating a more inclusive and equitable investment landscape. That’s important because women are not only capable investors, but they can also bring unique perspectives to financial decision-making too.
It’s up to us all in the financial services industry to recognise and address the barriers women face, such as confidence, risk perception, financial literacy, and access to investment opportunities. As an adviser, you can play a particularly powerful role in providing guidance to your female clients that can help them take charge of their financial futures.
And as we celebrate International Women’s Day, let’s together champion the importance of financial empowerment and ensure that women have the knowledge and confidence to build a secure and prosperous future.
Written by Rachel Marsden, Senior Investment Director and Investment Team Head, Brooks Macdonald
