Changing Trends: The Rise of Women Investors
The tide is turning, and women are beginning to invest in bigger numbers. A 2021 study by Fidelity found that 67% of women are now investing outside of their retirement accounts, up from 44% in 2018. Younger women are leading the charge, with 71% of Generation Z women and 63% of millennials investing.
This is fantastic news for not only women in finance, but economics as a whole. An estimated $700 billion could be unlocked by financial institutions by better serving women as investors. Moreover, if women invested at the same rate as men, an additional $3.22 trillion of investment capital could be unlocked globally.
Outshining the Competition
Despite men investing more than women, it is women who outperform their counterparts in the markets. Studies show that women on average achieve better results than men, with differences ranging from 0.4% to nearly 1%. However, individual results may vary, and it is important to approach investing with a well-informed strategy.
Ironically, it is their more cautious and long-term approach to investing and finances in general – a trait that prevents many from investing in the first place – that empowers them to be savvy investors. Women are less likely to trade frequently and hold an asset for the long term, which can often lead to more stable and consistent investment growth.
