Are Women Avoiding The Stock Market?
Historically women in general have been reluctant to invest in stocks and shares, preferring instead to place their money in ‘safer’ ISAs or other types of saving accounts.
A recent survey by Boring Money discovered that only 23% of women have chosen investment products compared to 35% of men. Only 32% of women feel confident choosing an investment product, against 46% of men. The group said the amount invested overall by 18-36 year olds in ISAs is up an impressive 33%, which shows that people are willing to save – but not necessarily in the most profitable way.
Yet while women have traditionally been regarded as risk-averse, a survey by The Share Centre showed the opposite, with 80% of the top ten shares bought by women were for equities in smaller companies, included exploration company Echo Energy, oilfield services provider Petrofac and gold miner Centamin. The top 10 on The Share Centre platform
- Echo Energy
- Petrofac
- Centamin
- Sirius Minerals
- GlaxoSmithKline
- Lloyds Banking
- UK Oil & Gas Investments
- Angus Energy
- IQE
- Premier African Minerals.
Women tend to have more ISA savings accounts than men, but they are also more likely to have cash in those accounts and men are more likely to choose the stocks and shares option.
Johanna Haigh, a top financial adviser at leading Hertfordshire based financial advice and financial planning firm Lyndhurst Financial Management says:
“We’ve had low interest rates for a very long time and that means that women have been missing out on the long-term returns that have been available in the stock market.
We have a Focus for Women department and we are working on behalf of women of all ages to help them make better financial decisions for their future. In the last four years, for example, a share ISA could have gained as much as 25% yet a cash ISA as little as 0.5%. A lot of women are not confident about investing in the stock market, especially if they are not on a high pay scale and they can be put off by jargon. Our advice is simple, straightforward, bespoke and jargon free!
I think women’s attitudes are changing and there are definite positive signs that our female investors are becoming more open to viewing investments on a long term basis and therefore they are more willing to invest in stocks and shares.”
