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Investing
IWD
It’s official: women are better investors than men. They just don’t think they are. In fact, a 2017 study from Fidelity Investments1 shows that just 9 per cent of women believed that statement. But that same study also analysed returns on investments by both men and women – and found that the women earned 0.4 per cent higher on their investments than the men. That figure might look small but it represents a whole lot of added value over time.
That study isn’t the only one, either. There’s a whole body of research2 which shows that women tend to make better financial decisions around investing. They’re more objective, they are less impulsive and they hold more diverse portfolios. As Fidelity’s senior vice president of women investors Alexandra Taussig said: “Women need to lean in and own the fact that they’re better investors and celebrate that.”
Bust the myths
So why don’t women celebrate our financial abilities more? Sadly, it’s hardly surprising that womens’ confidence is taking a while to grow. After all, as recently as the 1970s, many were routinely refused3 mortgages, loans, and credit cards.
Consequently, a disempowering myth grew up that women couldn’t manage money. A study by Merrill Lynch and Age Wave4 found that just 52% of women say they feel confident managing their investments, compared to 68% of men. Yet over a third of women in that study said they wished they had invested more of their money.
Be the change you want to see
But there’s good news: it’s the 21st century and the male-dominated world of investing is changing fast – and changing for the better. Last year, for example, saw the biggest-ever rise in the percentage of female fund managers. The number of mixed-gender portfolio management teams has doubled over the last six years – and these teams perform best in all markets on risk return. As the Citywire Alpha Female report5 points out, that shatters the myth that women prefer not to take risks in investing.
Women’s increased visibility in the professional fund management space matters, because it’s helping to boost confidence among women who want to manage their own investments.
And those investments are now more accessible than ever.
There’s still a way to go, but the investment landscape is finally changing to cater more for female investors. Tech is democratising investment strategies, information and processes: the dusty office and disapproving bank manager have long been consigned to history.
“It’s time to take control of your finances and realise just how much power you have in the investment space.”
Make a difference
Financial products are changing too, as the world changes and investor priorities change with it. Evidence shows that women are more likely to seek out sustainable investing. They care more about where their money goes, and they want to see that it’s making a real difference. As a recent RBC Wealth Management6 study of its US clients commented: “Female clients… are more likely to prioritise environmental, social and governance (ESG) impact when considering what companies or funds to invest in, while male clients are much more likely to prioritise financial performance.”
Just do it
And you no longer need hundreds of thousands to make investing worth it. In the 21st century, it’s for everybody, no matter how much money you have. So, if you’ve been considering taking your first steps into investment, it’s a great time to join the millions of women who are already doing it. It’s time to take control of your finances and realise just how much power you have in the investment space. After all, your financial decisions could literally change the world.
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Lockdown Lessons: The Chance To Learn About Money
Lockdown home-schooling may be testing the patience of many parents around the UK, however in terms of resources, things have developed since the start of the coronavirus pandemic.
COVID and The Saving Habit
For the most part of a year now, we have been on “lockdown”; staying at home in a bid to help reduce the spread of coronavirus and to protect the vital NHS.
Vital Family Support Comes from Over 50’s
Over the past ten years, the Bank of Mum and Dad has become a regular lender for young people around the UK.* For first time house buyers, it has become common to receive a loan from parents to establish a foot on the property ladder, with research this year showing nearly one in four home purchases are backed by “the Bank of Mum and Dad”.
Getting Back To Pensions
Over the past year, the world has been on hold with coronavirus having a huge impact in all aspect of financial life. Perhaps naturally, so have your future plans. Undoubtedly, this has brought concerns for those with pensions saved in volatile markets.
ISAs
It seems fair to suggest that everyone would like to put aside a bit of extra money when they can, and an ISA could be a smart way to do so. With the extra positive that they come with tax free interest, ISAs can be an efficient way of making your money work for you.
Back to School
Summer is finally drawing to a close, and parents all-round the UK are probably breathing a secret sigh of relief for the return of a routine and no more desperate attempts for entertainment without breaking the bank. The holidays can be pricey, not only with the various activities, but with preparing for the new school year. We’ve explored a few ways you could save yourself a few pennies at this time of year.
Bank of Mum and Dad
The reality for many young adults nowadays is that they can’t leave home without The Bank of Mum & Dad.
Flying the Nest
Becoming a university student involves a lot of life changes. Not only are you learning a whole new subject, making new friends and getting used to a new city, but you also need to start learning how to pay bills and how to find the money to have fun! We have pulled together a quick guide to ease you in to living independently.
