The world of investment has long been influenced by men. And it is still seen in 2021. New research shows that women investors in different parts of the world are being significantly underrepresented.
So, where does the UK currently stand in proportion to male and female investors? And what does the future hold?
Male vs. Female Investors in the UK: What Does Research Show?
According to a new report from online broker discovery and comparison platform BrokerChoozer, male investors outnumber female investors in every country in the world. The platform reports a split between 76% of male investors worldwide and 24% of female investors.
In some countries this gap is even wider. For example, the proportion of women investors in Bangladesh is only 12%.
Meanwhile, in the UK, the current divide between male and female investors is 79% to 21% for men.
It ranks the United Kingdom joint eighth on the list of the lowest proportion of women investors in Canada, India, Portugal and Turkey.
However, the gap is not wide everywhere in the world. In the Philippines, for example, the proportion of males among female investors is an admirable 56% to 44%.
A complete list of countries and their rankings can be found on the broker’s website.
Why is the number of female investors less?
Previous studies have shown why women are less likely to invest than men and have identified a few possible explanations.
Some studies have linked this phenomenon to gender pay gaps. They argue that pay inequality between the sexes leaves women with less disposable income – and less money to invest.
Women have also been found to be more at risk than men.
Lack of investment confidence and knowledge also seems to be a factor. A study by Yugov found that men expressed much more confidence and adequate knowledge about investing than women.
Are men better investors than women?
No. It’s actually the complete opposite.
Studies have shown that women work harder than men in terms of return on investment. A 2017 Fidelity study found that female investors performed 0.4% more than men. It may not seem like much, but over time, these differences are added.
Interestingly, one of the reasons women lag behind men is that many women avoid investing for the same reason: risk. Where men are often willing to take more speculative and risky investments, women are generally more conservative. They like to invest in tried and tested opportunities that have a good track record.
Women are more focused on the long term, which historically has proven to be a much better method of wealth creation. They spend more time researching their investments than men, which works in their favor in terms of returns.
What will happen in the future?
While there is still a significant gap between male and female investors, there is much to be optimistic about in the future. The number of women investors is constantly increasing.
In 2020, the number of new female investors increased by 354%, according to Saxo Markets. In comparison, the number of male investors has increased by 288%.
In the top investment platform Nutmeg, women accounted for 0% of new investors in 2020, 5% in 2019 and 201% in 2019. Only 2 %%.
According to Nutmeg, the Kovid-1 pandemic epidemic has significantly changed women’s attitudes toward money and possibly their investment.
Nutmeg research found that 41% of women said the epidemic began to think differently about their financial plans. And 2% of female investors said the crisis made their investment more important.
It is very good that the attitude towards financial planning and investment is changing among women. That being said, more needs to be done to address some of the other barriers that currently hinder investment among women, such as lack of investment confidence and knowledge.
The final word
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