Victoria Usher, Founder and CEO of GingerMay, highlights the ongoing gender gap in the world of finance and investment, with women still being outnumbered by men in terms of investing. A study showed that women are more likely than men to save rather than invest, and a smaller percentage of women have traded or invested in stocks and shares online.
The lack of confidence amongst potential female investors is a major obstacle in bridging the investment gap between men and women. Surveys have shown that many women feel uncomfortable investing due to a perceived lack of knowledge and understanding, which in turn prevents them from building confidence and knowledge through experimentation. If women in the UK invested at the same rate as men, it is estimated that managed assets would increase by $3.2 trillion.
Changing the inequality in investment can also positively impact the gender pay gap, which still exists in the UK despite increased transparency. Women tend to earn less and have less in their pension by the age of 55 due to factors like maternity leave and unpaid care work. Investing can be a tool for women to take control of their financial futures and potentially outperform based on ROI, as women tend to use tactics that protect profits.
Bringing more female investors to the table requires wider-scale action, with business leaders playing a crucial role in encouraging confidence and increasing access to educational content. Platforms like Investmate, Wealthify, and Etoro offer educational resources for investors of all experience levels. Fostering a sense of community around female investment can help raise awareness and inspire collaboration, with female investment experts speaking out at industry events to help demystify the investment space for women.
It is vital to change the mindset around investment and foster an environment where women are encouraged to participate and thrive in the investment sector. As a business leader, inspiring confidence, building knowledge, and encouraging women to take part in investing can have a positive impact not only on the individual but also on the UK economy as a whole. Collaboration and knowledge-sharing are key in stopping the cycle of female exclusion from investment opportunities and creating a more inclusive and diverse investment landscape.
