Bridging the Gender Investment Gap: InvestEngine and FemaleInvest Join Forces
The financial landscape is evolving, yet a significant gender investment gap persists, highlighting disparities in how men and women approach financial risk and reward. In a groundbreaking move, investment platform InvestEngine has partnered with FemaleInvest, an organization dedicated to empowering women through financial education, to tackle this pressing issue head-on.
The Gender Pay Gap: A Financial Barrier
Research indicates that women globally earn, on average, 37% less than their male counterparts. This financial disparity not only affects their immediate earnings but also has long-term implications for their ability to invest and secure their financial futures. Alarmingly, at the current rate of progress, it is estimated that it will take an astonishing 267 years to close this financial gender gap. Such statistics underscore the urgency of addressing the barriers that prevent women from engaging in investment opportunities.
Insights from InvestEngine’s Research
In the UK, InvestEngine conducted a survey of 2,000 adults that revealed striking differences in investment behaviors between genders. While both men and women are equally likely to save money each month, women are significantly less inclined to invest. Instead, many women opt to keep their savings in low-yield accounts, which can hinder their financial growth over time.
Key findings from the survey include:
- Only 13% of women own a stocks and shares ISA, compared to 23% of men.
- Among women who do have an ISA, just over 13% make regular deposits, while nearly 24% of men do.
- A notable 62% of women prefer low-risk investment products, in contrast to 56% of men.
- When it comes to prioritizing returns, 36% of men emphasize this aspect, compared to only 25% of women.
Interestingly, despite being less likely to invest, women often achieve better returns than men. Their tendency to maintain diverse portfolios and adopt prudent investment strategies, rather than speculative approaches, contributes to this outperformance.
Women’s Investment Performance: A Silver Lining
A study by Warwick Business School highlights that women outperform men in annual returns on investment portfolios, achieving returns 1.94% above the performance of the FTSE 100. In comparison, men’s investments were only 0.14% above the FTSE 100, resulting in female investors outperforming their male counterparts by 1.8%. This data suggests that when women do invest, they often do so with greater success, emphasizing the need to encourage more women to take the plunge into investing.
A Collaborative Approach to Education
Recognizing the need for change, InvestEngine and FemaleInvest have come together to raise awareness and educate women about investing. FemaleInvest’s mission is to empower women by providing them with the knowledge and tools necessary to navigate the financial landscape confidently.
Elspeth Brown, marketing manager at InvestEngine, emphasizes the importance of education in bridging the investment gap. “Our research shows that 40% of women don’t know how stocks and shares ISAs work compared to just 29% of men. This lack of understanding, combined with a reluctance to take risks, is creating a significant investment gap that needs to be addressed.”
Empowering Women Through Events
To tackle these challenges, InvestEngine and FemaleInvest will host a series of events throughout September, October, and November. These events aim to educate women on various financial topics, from understanding the differences between General Investment Accounts and ISAs to exploring the benefits of regular investing with autopilot portfolios.
Lærke Engelbrekt, community lead and webinar host at FemaleInvest, shares the organization’s commitment to closing the financial gender gap. “We are on a mission to educate women on everything from managing their finances to investing in the stock market. An important part of this mission is ensuring they have equal access to investment tools. That is why we are pleased to partner with InvestEngine.”
The first event, titled ISA vs GIA, is scheduled for September 13th, marking the beginning of a series of informative sessions designed to empower women in their investment journeys.
Conclusion
The partnership between InvestEngine and FemaleInvest represents a significant step towards addressing the gender investment gap. By focusing on education and empowerment, these organizations aim to equip women with the knowledge and confidence needed to take control of their financial futures. As they embark on this journey together, the hope is that more women will engage in investing, ultimately leading to a more equitable financial landscape for all.