Women Investors: Statistics, Challenges, and Opportunities for Financial Empowerment

What if I told you that investment portfolios managed by women often outperform those managed by men - yet women invest less overall?

It might surprise you to learn that women are increasingly shaping global financial markets. In Europe alone, women are expected to control €10 trillion in assets by 2030. Despite the advancements, a persistent gender investment gap remains. On average, women invest 29% less per month than men.

What’s behind this gap? More importantly, how can we close it? Let’s explore the numbers, trends, and key insights into the growing role of women in investing and how we can foster financial empowerment.

The Growing Influence of Women in Investing

Over the past few decades, investing has transitioned from a male-dominated field to one with a growing female presence. The number of women entering the world of investing has surged, largely due to increased financial education, technological advances in digital investment platforms, and growing economic independence.

• A Fidelity Investments survey in 2021 found that 67% of women in the U.S. were investing outside of their retirement accounts, compared to just 44% in 2018.
• The Covid-19 pandemic played a pivotal role in this shift, with 51% of women stating they began investing during the pandemic.
• Age demographics show increased participation: 71% of millennial women (ages 25-40), 67% of Gen X women (ages 41-60), and 62% of Boomer women (ages 57-75) are now investing outside of retirement savings.

According to a McKinsey study in 2022 women in Western Europe control roughly €4.6 trillion in assets, with projections showing this could reach €10 trillion by 2030, a nearly 45% share of total assets under management.

The Investment Gap – Key Factors Behind It

Despite outperforming male counterparts, women still invest less. What’s causing this disparity? Several factors contribute to the investment gap:

• A N26 survey in 2022 revealed that women in Europe invest 29% less per month than men, due in part to lower wages, career breaks, and differing financial priorities.
• A NerdWallet survey in 2021 found that only 48% of women in the U.S. were investing in the stock market, compared to 66% of men.

However, women’s portfolios tend to outperform men’s by 0.4% annually, according to a Warwick Business School study in 2018, largely due to their long-term focus and lower trading frequency.

Addressing the Gap

This gap can be bridged with financial education, transparent investment tools, and data-driven decision-making. If more women actively participated in investing, the global economy could see trillions in additional capital driving economic growth.

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Challenges Women Face in Investing

Despite the increasing number of women investors, certain challenges remain. Let’s break them down:

1. Financial Confidence: Despite making sound investment decisions, many women feel unsure about their financial knowledge. The Fidelity study in 2021 revealed that only 14% of women in the U.S. feel confident selecting investments that align with their goals.
2. Representation: Women are underrepresented in leadership roles within the financial sector, leading to fewer role models in the investing space.
3. Time Constraints: Women, especially those with caregiving responsibilities, often face time constraints, limiting their ability to research and manage investments.

Automated financial tools and digital investment platforms can help mitigate these challenges, offering transparency and simplifying investment decisions.

The Women Changing the Investment Landscape

Women are driving significant change in the investment landscape, especially in sustainable investing. Key trends include:

• Women-led investment funds: These funds, which focus on diversity and impact investing, have grown substantially. In 2023, 86 women-led venture capital funds raised $3.5 billion, up from $3 billion in 2022.
• ESG investing: Female investors are 7% more likely to consider ESG factors (Environmental, Social, and Governance) when making investment decisions. A majority of U.S. women under 60 are in favor of ESG investing, emphasizing sustainable companies that pay fair wages and practice environmental responsibility.
• Venture capital & angel investing: Women are increasingly involved in venture capital and angel investing, supporting women-led startups. By 2016, women made up 26% of angel investors in the U.S., up from just 5% in 2004. Female investors are 71% more likely to support women-led startups than male investors (43%).
• Sustainable investing: Projections indicate that sustainable investing will reach $50 trillion by 2030, and a Morgan Stanley study found that 84% of women in the U.S. expressed interest in this investment approach.

Why Women Are Natural Investors

Women are increasingly adopting long-term investment strategies, which lead to better returns. What makes women natural investors?

• Long-term focus: Women tend to trade less frequently, avoiding emotional decisions and adopting a strategy centered on patience.
• Risk management: Women often take a more measured approach to risk, leading to steadier portfolio growth.
• Research-oriented mindset: Women actively seek to understand the fundamentals of investing, prioritizing research, and informed decision-making.

These habits contribute to consistent, sustainable returns over time, making women’s portfolios some of the most successful in the market.

Actionable Tips for Women to Start Investing Today

If you're ready to start your investment journey, here are a few simple steps to follow:

1. Start small: Even small amounts, like $50 per month, can lead to long-term wealth.
2. Educate yourself: Keep up with financial news, take courses, and join investment communities.
3. Use technology: Leverage platforms like Value Sages to simplify investment decisions.

Conclusion: Resourceful Women Invest with Confidence

Women are making waves in the investment world, and there’s still significant room for growth. By overcoming challenges, leveraging modern tools, and adopting smart investment strategies, women can achieve financial independence and shape the future of investing.

💡 Join the waitlist today and take the first step toward empowering your financial future!

References: fidelity, mckinsey, nerdwallet, cfa institute, venturecapitaljournal, euronerd, rbcwealthmanagement, entrepreneur, pitchbook, morganstanely