Mind the Gap: Why Women Feel Less Confident Investing

Women are significantly less likely to feel confident about managing investments, new research from wealth management firm Rathbones shows.

Approximately 67% of women say they feel confident managing their investments compared to 80% of men.

Women were also more likely to question their knowledge. The data showed that 36% of women say they lack the know-how to manage their investments compared with 23% of men.

When it came to taking on investment risk, women were also less likely to participate.

Some 25% of women said they were happy to take a higher level of risk to achieve a higher return compared to 40% of men.

Around 35% of women said that stocks and shares were too risky compared to 23% of men, according to the figures.

Women still remain engaged with finances despite expressing a lack of confidence.

Around 83% of women said they carefully plan their savings, investments and pensions, compared to 86% of men.

What does this mean?
The confidence gap has a knock-on effect for engagement with investing. For instance, 1.8 million men subscribe to a Stocks and Shares ISA compared to 1.3 million women.

Conversely, women hold significantly more Cash ISAs compared to men. Around 4 million women subscribe to a Cash ISA compared to 3.1 million men.

How to start investing
Whether you’re planning to start investing or looking for a new way to grow your wealth, these simple steps can help you get started:

1) Choose a provider
You’ll need to use an investment platform to get started. Shopping around is key to finding a suitable provider. Check out our best Stocks and Shares ISA guide for our pick of the best platforms.

2) Apply online
Most providers let you set up an account in minutes. You’ll just need your personal details, National Insurance Number and a debit card to make the first deposit.

3) Start investing
You can add up to £20,000 into an ISA each tax year. Setting up a direct debit can help you maximise your allowance.

4) Monitor the results
Keep an eye on how your portfolio performs to make sure it’s on track to achieve your financial goals.

For more tips, check out our beginner’s guide to investing and listen to our Investing Insiders Podcast Episode Investing Made Simpe: How To Turn Your Financial Goals Into a Reality with Philly Ponniah.