Myth 1: Women are not confident investors
- Not true: Many women already handle household finances (think of them as the CEOs of their households).
- Growing numbers: A 2021 study by Fidelity found that 67% of women are now investing outside of their retirement accounts, compared to 44% in 2018.1
Myth 2: Women are risk averse
- Not quite: Women approach risk differently than men. They often prefer making well-informed decisions and may prioritise financial security. This doesn’t mean they avoid risk altogether.
Myth 3: Women are financially illiterate
- False: Women respond to investment language differently than men. One major obstacle is the often alienating and inaccessible terminology, with 63% finding it off-putting. Many don’t see themselves as ‘investors’ because of this.2
Myth 4: Women lack interest in investments
- Wrong again: Women might prioritise other aspects of their life, but it doesn’t mean they lack interest in investing. This myth also implies a lack of confidence which isn’t true for many women. Seeing more women in the investment industry could inspire greater interest over time.
Myth 5: Women lack access to money to invest
- Not necessarily: Women often have less accessible money due to lower incomes, secondary earnings, or leaving the workforce for caregiving. However, with the right financial planning and support, women can overcome these challenges and build a strong investment portfolio.
Empowering women in investing
Dispelling these myths is crucial for fostering a more inclusive and equitable investment landscape. Women are not only interested and capable investors, but they also bring unique views and approaches to financial decision-making. By recognising and addressing the barriers women face, such as confidence, risk perception, financial literacy, interest, and accessibility of money, we can empower more women to take control of their financial futures.
Supporting women in their financial journey
As more women engage in investing and see themselves represented in the financial industry, we can expect to see a positive shift towards greater gender diversity and equality. It’s time to move beyond outdated stereotypes and support women in their journey towards financial empowerment.
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