Several new studies have been released in the last few months that explore attitudes to investment among female savers, many of whom have found an increased appetite for using money more effectively but a more cautious approach to risk.
According to a new study by BNY Mellon, called The Pathway to Inclusive Investment, researchers estimated that women could provide an additional £2.36 trillion of capital to the investment market if they participated more in it.
In fact, if women decided to invest in the same way as their male counterparts, the worldwide investment industry would experience a “significant and lasting effect”.
The new report surveyed 8,000 respondents across 16 markets, alongside more than 100 asset managers, to review the approach of current and potential female investors.
According to the study, women faced three main barriers to investing, which were defined as:
- The income hurdle – Women believe they need £3,026 of disposable income each month – or £36,900 a year – before investing some of their money.
- High-risk perception – Around nine per cent of women said that they have a ‘high’ or ‘very high’ level of risk tolerance, compared to 49 per cent who have a ‘moderate’ level and 42 per cent have a ‘low’ tolerance for risk.
- Confidence crisis – Only 28 per cent of the women surveyed felt confident about investing some of their money.
However, despite these findings, things may be changing. A separate study conducted by eToro found that 50 per cent of 1,000 investors it surveyed had only started investing over the past two years, with around 30 per cent deciding to invest as a result of the pandemic.
Of those who took part in the eToro study, 78 per cent believed that their current investment strategy would give them enough income in retirement.
However, instead of seeking out professional independent financial advice, 49 per cent of female investors in the UK said they turned to friends and family for help with investments, which may suggest an unwillingness or lack of knowledge about the benefits of receiving independent financial advice.