According to the 2023 ASX Investor Study, 42% of current investors are women. 

And they’re making killings in the stock market

Various studies have been conducted to try and work out exactly how much women outperform by, and these studies have found the difference to be approximately 0.4%, according to Fidelity. 

Now, that might seem small, but when that teeny tiny percentage amount is compounded over a lifetime of investing, and you’re working with investments worth thousands, hundreds of thousands, or even millions of dollars, that difference can mean more than you might think.

Why are women outperforming as investors?

There are various reasons, and it’s difficult to pinpoint because each investor is different in their own way, irrespective of gender. 

On the whole, women tend to be less benchmark driven, and more willing to do research and open to changing their minds. This makes them better positioned as long-term investors.

What are the barriers for women when it comes to investing?

Women have started investing more recently, as it’s typically been a male-dominated field. 

So for a long time, women weren’t empowered to invest, and didn’t necessarily see themselves as “investors”. 

Even now, women tend to enter the stock market later, and believe they lack experience and investment knowledge.

The gender pay gap is another barrier, where because on average, women earn less than men, they tend to be more hesitant to invest, and prefer instead to save.  

But slowly this is all changing.

A 2021 study by BYN Mellon found that if women invested at the same rate as men, there would be an extra $3.22 trillion USD of assets under management.

More women in investing isn’t just better for women

More women making investment decisions would make the world a better place. Literally. 

Research by stock-broking app Moomoo found that 38.3% of women prioritise environmental, social, and corporate governance (ESG) in their investing decisions, compared to 24% of men. 

While there are still barriers preventing women from excelling within the investing world, these barriers are slowly being overcome. 

We want to play our part in ensuring that women from all walks of life continue to learn about the benefits of investing, and prioritise building financial confidence.