In honor of International Women’s Day a few weeks ago, being a young female investor myself, and hosting our first “all female presented” seminar next week (RSVP), I wanted to take the opportunity to write a piece for this week’s Kingsmill’s Investment Miscellanea highlighting what investing has looked like for women in the past, where we’re at now and why I believe the future for women in the industry is bright.
The Past:
For much of history, women have faced a number of challenges in the investing and financial realm at large. One of the biggest barriers has been a lack of education and awareness. Women have traditionally been socialized to view money and finances as a male domain, with little emphasis placed on financial literacy. As a result, many women have lacked the knowledge and confidence to invest in the stock market or other financial instruments.
Another challenge that women have faced is a lack of access to capital. Women have historically been paid less than men for comparable work, which has limited their ability to invest and build wealth. Additionally, many financial institutions in the past were hesitant to lend money to women, particularly if they did not have a male co-signer.
The Present:
Thankfully, the landscape has shifted in recent years. More and more women are taking control of their finances, learning about investing, and actively participating in the stock market.
According to a recent study by Fidelity, the number of women who are investing in the stock market has increased significantly. In 2018, 40% of women reported that they were investing in the stock market, up from just 19% in 2015. Additionally, the study found that women tend to be more patient and risk-averse investors than men, and are more likely to hold onto their investments for the long-term. In fact, another study found that, on average, women outperformed men in investment returns by 0.4% (nothing drastic, but we’ll take it!)
The Future:
Looking ahead, we can expect to see continued progress.
Some of the key trends to watch for include:
- Greater access to capital: As more women enter the workforce and demand equal pay for equal work, we can expect to see greater access to capital. This will allow more women to invest and build wealth over time.
- Continued growth of female-focused investment platforms: We can expect to see continued growth of female-focused investment platforms, which will offer women more options when it comes to investing.
- Increased gender diversity in the financial industry: As more women enter the financial industry, the traditional male-dominated culture of finance will break down and create a more inclusive industry.
The CFA Institute’s analysis supports this notion, claiming that by 2025, there won't be a meaningful gender gap in stock market participation in the United States.
One area where I believe we will see significant progress is in the field of impact investing. Many women are interested in investing in companies and funds that align with their values, and are looking for ways to make a positive impact through their investments. As the demand for socially responsible investing continues to grow, I believe that women will be at the forefront of this movement.
Overall, I am excited to be a part of this trend and to help pave the way for future generations of women in wealth!
And speaking of women that are focused on making an impact, our next seminar: “Estate and Financial Planning for Families and Business Owners” will be our first presented by all women: Connie Freitas and Karen Snowdon-Steacy. It will also be co-hosted by Mary Okhihie.
Hope to see you there!
Avril