Merryn's Blog

How to get more women interested in investing

Rather than treating investing as a hobby the way many men do, women tend to focus on long-term goals. That’s something the finance industry should bear in mind if it wants more women to buy its products.

I am asked on Twitter (follow me on @MerrynSW) by the editors of what looks like it will be a great new magazine (Libertine) what I think about this Wall Street Journal article on female investors.

The basic premise is that female investors aren't the same as male investors. Investing isn't a hobby for them, it is a way to achieve a goal. Therefore if the industry wants to capture them as effectively as it does men, it needs to advertise a "long term goal orientated approach".

Do I agree? I do.

Studies show that women hold more of their wealth in cash than men do; that when they do invest they do so for the long term; that they don't trade often, and practically never spread bet; that they seek out simple investments; and (this is the good news) that as a result, their long term returns are a little higher than those of men.

But I think that the absolutely key point here is the hobby' bit. By the time they have money to invest, most women are in their 30s or 40s. They have jobs, children, houses, fragile parents and partners. They have no time for anything. Ever.

Men very often appear to somehow find the time to spend their evenings at computers thinking about what to buy and sell (racking up the costs as they go). Women, not so much. So if they get around to investing, they need something they can buy and leave.

The WSJ piece looks at what kind of portfolios they should be sold in the US. Here, I reckon there is room for a few big funds to offer themselves up as a one stop shop to busy women.

Something for the board of Alliance Trust (a rarity in that it is a FTSE 250 firm run by a woman) to think about perhaps?

Recommended

Share tips of the week – 9 June
Investments

Share tips of the week – 9 June

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
9 Jun 2023
Buy London property at a discount
Investments

Buy London property at a discount

The availability of high-quality commercial real estate is dwindling. This company will profit, says Rupert Hargreaves.
8 Jun 2023
Saving vs investing: which is better to help you make more money?
Personal finance

Saving vs investing: which is better to help you make more money?

Saving has become a more attractive option with interest rates hitting the highest levels seen in years, but if you’re prepared to take some risk inve…
7 Jun 2023
74% of women too nervous to invest
Personal finance

74% of women too nervous to invest

Three in four women do not invest and are missing out on building wealth as a result, research shows.
7 Jun 2023

Most Popular

How much will it cost you to retire early?
Pensions

How much will it cost you to retire early?

The pre-state pension income gap means couples may need an extra £136,000 if they want to retire at 60 – can you afford to retire early?
6 Jun 2023
Best debit and credit cards to use while travelling abroad
Personal finance

Best debit and credit cards to use while travelling abroad

If you’re going on holiday or travel abroad regularly, it’s worth knowing what the best card is to avoid hefty fees. We weigh up the charges and any p…
6 Jun 2023
Best easy access savings accounts – June 2023
Savings

Best easy access savings accounts – June 2023

Rising interest rates have boosted the returns on instant-access savings accounts and we're seeing some of the highest rates seen in years. We look at…
8 Jun 2023