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Women Are Changing the World of Investment

With women expected to control nearly 45% of total assets under management in Western Europe by 2030,  and a total of €10 trillion, the financial industry has a clear imperative to address an underserved segment in investment advisory. Despite growing participation, financial products and services have been designed with a focus on the preferences of traditional investors. Tailoring services to meet the needs of women—who now bring unique requirements in terms of risk appetite, financial goals, and long-term planning—represents a substantial opportunity for financial institutions to foster inclusion and drive impactful change.

The Untapped Potential of Women Investors

Women investors show low confidence in identifying themselves as investors

Recent research reveals that 71% of women are investing in the stock market, up from 60% in the last two years. Among younger women, participation is even higher, with 77% of Gen Z women (up to around 27 years old as of 2024) and 74% of Millennial women (aged 28 to 43) now investing outside their retirement funds. Yet, despite this growing interest, a notable gap remains: compared to 76% of men, only 64% of women who invest consider themselves “investors”, underscoring a persistent lack of confidence and self-identification in the role of investor.

Women in investment
Source: Fidelity Investments. “2024 Women & Investing Study”.
Women are more focused on sustainability, taking a broader, values-driven approach to investing.

Compared to men, they are 7% more likely to select investments that align with environmental, social, and governance (ESG) values. This focus on sustainability, along with the need for longer-term financial stability, positions women as powerful contributors to the trend toward sustainable finance, yet few advisory firms actively tailor ESG and impact-focused options specifically for female clients.

Financial Behaviour Differences: A Cautious Approach with Competitive Returns

Women’s approach to investing is notably conservative but with demonstrable success.

Findings show that 51% of women identify as conservative investors, compared to 47% of men, and prefer to wait out market volatility rather than react impulsively. They tend to favour diversified and low risk investments, with only 43% of female investors holding cryptocurrency, compared to 55% of male investors. Despite this conservatism, research over the past decade indicates that women consistently outperform men by 0.4% annually.

Women in investment
Source: Fidelity Investments. “2024 Women & Investing Study”.
Women’s risk aversion often translates into more guidance to navigate investments.

For instance, 71% of women agree that “investing is a way to build generational wealth”, but only 14% express high confidence in their investing knowledge. This suggests that while women are interested in growth, they require more guidance to increase confidence in navigating investment products.

Barriers to Financial Engagement: The Need for Accessible, Inclusive Advice

Many women feel intimidated and overwhelmed by financial jargon and financial decisions.

Over 63% of women report feeling intimidated by industry jargon, and 55% feel overwhelmed by financial decision-making. This disconnect highlights the need for more accessible language and educational resources that demystify investment products and create an inviting space for female investors.

Limited funds and earnings are major barriers to women's investment participation.

38% of women cite lack of spare funds and 26% not earning enough as a major barrier for investing. Reducing the participation and engagement of women as investors. Eventually underscoring the importance of affordable and flexible investing options that can accommodate smaller, consistent contributions over time.

Women in investment
Source: Financially Fearless (Hargreaves Lansdown). “Why Women Invest”.
This lack of engagement is further compounded by the lack of female role models in finance.

While other industries have seen a rise in influential women, the investment field remains male-dominated. Women, especially those in lower-income brackets, report fewer instances of having grown up with investment role models or having access to early financial education, which can delay their entry into the world of investing.

Shifting Wealth Dynamics: Why Advisory Firms Should Take Note

As generational wealth shifts, women’s role as financial decision-makers continues to grow.

Currently, women in Western Europe control approximately €4.6 trillion in assets under management, and this number is projected to increase at an 8.1% compound annual growth rate, far outpacing the 2.7% rate for men. This surge is due, in part, to longer life expectancies and the increasing prevalence of female breadwinners, particularly in the Millennial and Gen Z cohorts. In fact, 83% of women today feel it is more common for women to be primary income earners compared to previous generations.

Women in investment
Source: McKinsey & Company. “Wake up and see the women: Wealth management’s underserved segment”.
Financial advisers have a unique role to play in helping women overcome these barriers.

Furthermore, more than 7 in 10 women report wishing they had started investing earlier, yet over 47% of women still worry about making the “wrong” financial choice. By offering targeted support, personalised education, and tailored strategies, advisers can prioritise women’s stability, long-term growth, and intergenerational wealth.

Practical Recommendations for Financial Advisers

Given the differences in investment approach and confidence levels between men and women, financial advisers can create more inclusive and supportive services for female clients through the following steps:

  1. Deliver Clear, Actionable Guidance: With 68% of women indicating they would invest more if they had clear steps to follow, advisers can demystify the process by breaking down complex concepts into actionable, digestible steps. Providing transparent fee structures and clear investment pathways can make a meaningful difference in engagement.
  2. Focus on Long-Term Planning and Wealth Preservation: Women prioritise security, particularly with retirement and intergenerational wealth. Advisers should offer diversified portfolios that balance growth and stability, incorporating ESG options that resonate with women’s values and concerns about sustainability. Additionally, personalised retirement planning can address the unique financial trajectories of women, who often face career interruptions or caregiving responsibilities that affect retirement savings.
  3. Use Language that Engages, Not Intimidates: Studies show that the majority of women feel alienated by traditional financial jargon. By adopting straightforward, plain language and fostering an “inclusive” perception of investing, advisers can create a welcoming environment. Community-oriented programs or events targeting women, such as peer investment groups or educational workshops, can also foster comfort and confidence.
  4. Showcase Female Role Models and Mentors: Since women often seek advice from family and friends rather than financial advisers, providing visible female mentors and success stories in the investing field can help bridge the gender gap. Financial firms can build credibility by actively promoting female-focused initiatives, which may increase women’s confidence in their ability to manage and grow their investments.
The Future of Women in Investing: A Catalyst for Change

With more than half of ISA accounts in the UK now held by women, and female investors generally holding higher account balances, the shift towards female empowerment in finance is undeniable. However, achieving true equity requires that financial institutions adapt their advisory services and products to align with women’s unique financial needs and risk profiles. Women are increasingly recognising that investing is a powerful tool for building financial resilience, and that obtaining the right guidance can help them manage their money more effectively. In fact, 77% believe that working with a financial adviser would boost their confidence in managing their wealth.

By providing advice that speaks to women’s priorities, fostering inclusive language, and promoting relatable role models, financial institutions can play a transformative role in closing the investment gender gap. As women’s financial influence continues to grow, advisory firms that embrace this change will not only contribute to a more equitable investment landscape but will also benefit from a dedicated, resilient, and future-focused client base.

References

Fidelity Investments 2024, “2024 Women & Investing Study”. https://newsroom.fidelity.com/pressreleases/new-research-from-fidelity–shows-71–of-women-own-investments-in-the-stock-market/s/db3a5765-9b69-4e51-a315-66ecc51e0066

Hargreaves Lansdown 2024, “Why Women Invest. A Deep Dive Into Closing The Gender Investment Gap”. https://www.hl.co.uk/financially-fearless/why-women-invest-report

Mckinsey & Company 2022, “Wake Up And See The Women: Wealth Management’s Underserved Segment”. https://www.mckinsey.com/industries/financial-services/our-insights/wake-up-and-see-the-women-wealth-managements-underserved-segment

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