Blog: Making Investing More Inclusive to Women

Research that was recently commissioned by the BNY Mellon studied the attitudes and behaviours held by females about the topic of investing.

Its findings hardly came as a surprise. There are ostensible barriers that prevent a higher level of investment participation from females.

Reason #1: Lack of Confidence

The research found that less than 10% of women feel that they fully understand investing, and only 28% felt confident about investing some of their money. Furthermore, 45% of women described the stock market as “too risky”. The market has many companies and sectors — some are complex and complicated. The market itself is also volatile. However, these concerns can be subsided with more frequent communication between the Financial Institution and its client.

Reason #2: Greater Participation Needed

According to the research, 86% of asset managers target their products primarily to males. Offering a more enhanced dialogue will lead to greater investment participation.

Reason #3: Potential to Align Personal Values

Females would invest more if the investments were aligned to their personal values. The study found that 55% of women would invest more money if the investments offered a positive social and environmental impact. In a customized portfolio, each investment can be discussed with the client and restrictions can be imposed to exclude sectors or companies.

Reason #4: How Much is Enough?

The average female felt she needed much more money than is necessary to get started. The average female believed she needed $50,000 of disposable income each year before starting to invest. Most portfolio managers have minimum investment requirements and would agree with this statement. We believe portfolio managers should welcome new clients just starting out and do not subscribe to account minimum requirements.

Removing these barriers to investment participation will lead to more economic equality. Many of these misperceptions listed above can be addressed with enhanced communication and engagement between you and your Wealth Management Team.