‘Lack of confidence’ to blame for gender investment gap
More than a third of wealthy women do not invest due to a lack of confidence, according to new research.
A total of 35 per cent of high net worth women do not have an investment portfolio, a survey of 500 wealthy individuals found, compared to 17 per cent of men.
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Almost half – 45 per cent – of female respondents to the survey carried out by Canaccord Genuity and Yougov said they were cautious investors and were more likely than men to be nervous about their financial future.
The study found that 49 per cent of wealthy women had more confidence in property as an asset class that could contribute to their financial future, while only 27 per cent thought the same of investment portfolios and 15 per cent of pensions.
Meanwhile, 38 per cent of high net worth men believed their investment portfolio will contribute most to their long-term wealth, followed by pensions and property at 28 and 27 per cent respectively.
Duncan Stratford, head of UK front office at Canaccord Genuity Wealth Management, said: “Time and again studies have shown that investing in the markets provides the best return of any asset class.
“And other studies have shown that in most cases, women would rather leave their money in cash or invest in property rather than the markets.
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“Women have an inherent mistrust of investing, but they are missing out on an opportunity to secure their financial future if they don’t have a portfolio in place.”
He added: “This is a clarion call to the financial services industry that they need to understand the underlying reasons why women aren’t investing and collectively work together to clarify the benefits of pensions and investments.