The financial landscape has undergone an inspiring transformation, as women increasingly embrace leadership roles in wealth management. This evolution prompts a compelling question: Are women better investors than men?

Behavioural Traits Influencing Investment Success

Women now control a substantial portion of global wealth. According to RBC Wealth Management, 

women currently oversee 52% of the wealth

, which is projected to rise to two-thirds by 2030. In the UK, Evelyn Partners highlights that 

women are increasingly occupying positions of greater income and wealth

, driven by factors such as increased inheritance, entrepreneurship, and leadership roles.

However, a gap remains in financial advice tailored to women. Only 5% of financial advisors have specific strategies to engage female clients, and many women keep a large portion of their savings in cash, potentially hindering long-term growth. Swiss bank 

 has been training its advisers to help them understand the differences between men and women in their attitude towards finance. It began by conducting research to understand the barriers for women as investors and then asked behavioural scientists to help develop ways in which advisers could improve their communication with female clients.

Empirical data indicates that women often achieve better investment returns than men. 

 which analyzed over 5 million accounts over a decade, found that women earned returns that were 0.4% higher than those of men. Additionally, a report from 

 showed that, in 2024, women’s investments outperformed men’s by 4%, based on data from its trading customers. While this difference may seem small, the power of compounding can lead to significant gains over time.

 found that men traded their accounts 45% more than women, leading to lower net returns due to overtrading. Single men, in particular, underperformed single women by 1.44% annually. This trend is not limited to retail investors. Dr. Daniel Crosby notes that 

female hedge fund managers have consistently outperformed their male counterparts

, attributing this to women's tendencies towards patience and long-term planning

However, only 33% of women perceive themselves as investors, according to 

. Furthermore, about 34% of women in a US-based survey by 

 reported that they had not started investing, compared to only 24% of men.

Behavioral Traits Influencing Investment Success

Several behavioral factors contribute to women's investment success:​

 Research indicates that women generally trade less frequently than men. This behavior can lead to lower transaction costs and a reduced risk of making impulsive decisions. Olivia Newmann, a Private Client Manager at Brooks Macdonald, notes that during volatile market conditions, many investors tend to react impulsively. However, 

: “We encourage investors to remain invested during uncertain times. While investments may experience short-term volatility, they have the potential for growth in the long run.” Women tend to trade less frequently than men, reducing transaction costs and the likelihood of making impulsive decisions.​ Newmann understands that in volatile times, people tend to react, but “we would encourage investors to stay invested through uncertain times. Investments can be volatile in the short term but can have the potential for growth in the long term."


 Women tend to adopt a long-term investment strategy, prioritizing steady growth over short-term gains. "The earlier you start saving and investing, the greater your potential for wealth growth. You'll have more time to benefit from the power of compounding," Newmann explains.


 Women tend to be more risk-aware and take fewer risks when it comes to investing. According to Megan Jenkins, Partner and Chartered Financial Planner at Saltus, "it is often reported that women are more reluctant to take financial risks than men." This reluctance may stem from the notion that 

women have less room for error with their finances compared to men

. However, this cautious approach can result in more diversified and balanced portfolios, ultimately leading to more stable returns.

These traits correspond with findings from 

, which show that women are less inclined to engage in speculative investments and more likely to follow consistent investment strategies.

Another key difference in the way women consider wealth planning, compared with men, is that they often favour a holistic approach — one that considers their broader life goals, values and priorities, rather than fixating solely on investment returns.

Despite these strengths, challenges persist. 

 emphasizes the need to address systemic barriers that hinder women's financial empowerment . Efforts to provide tailored financial education and advisory services are crucial in bridging the gender wealth gap.​

Emma Wheeler, the head of women’s wealth at UBS Global Wealth Management, suggested to the 

 that women need to build their financial confidence in order to feel comfortable taking on more risks to address the existing gaps. “We can support this by providing financial education to enhance awareness and expertise, as well as offering trusted advice.” She notes that women are already making sound investment decisions. Generally, they take a long-term approach as investors, adhere more closely to their investment strategies, trade less frequently than men, and are less reactive to market downturns. “For these reasons, their portfolios often outperform,” Wheeler says. “You could say that women are less emotional than men as investors.”

While it’s important to recognize that no gender is inherently superior in investing, evidence suggests that women often exhibit behavioural traits that enhance their potential for successful long-term investing. As the financial landscape transforms, embracing and nurturing the distinct strengths women contribute to investing will be crucial in driving inclusive economic growth.

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Are Women Better Investors Than Men?

International Women's Day serves as a poignant reminder of the progress women have made in various fields, including finance and investment. Despite the progress, challenges persist, and financial empowerment remains a key focus for women around the world.

Gender penalties, such as motherhood, childcare and menopause, amongst others, have made it challenging and overwhelming for many women to have positive financial experiences, particularly in the investment field. Megan Jenkins, Partner and Chartered Financial Planner at Saltus reminds us that whilst there have been advancements in closing the gender pay gap, it still remains. «The earnings difference means that men and women ultimately start their wealth journey on uneven ground. This may mean women need to save more to achieve the same outcomes in retirement and so planning ahead and starting on their journey early is key.»

In this empowering day, let’s explore the unique challenges women face in the realm of finance, particularly in the context of investing. Despite them, there’s an increasing number of women entering the investment world, therefore we share some initiatives which are actively working to bridge the gender gap.

Historically, women have encountered unique challenges related to finances, including wage gaps, career interruptions due to caregiving responsibilities, and longer life expectancy leading to increased financial planning needs. Poppy Fox, Investment Director at Quilter Cheviot, 

 some of these hurdles: The Motherhood penalty, for instance, translates into mothers earning 20% less than fathers ten years after the birth of their first child and very few new parents opt to take shared parental leave. Another one is the childcare penalty, since 65% of mothers work compared with 93% of fathers, according to ONS statistics. In addition, many of the informal care responsibilities performed in families are assumed by women, such as taking care of elderly family members, and when women hit menopause, statistics show that one in 10 women have left work due to menopause symptoms, 14% reduced their hours at work and 8% decided against applying for promotion.

These challenges often translate into distinct barriers to entering the world of investments. “Women typically spend 10 years away from full-time employment to start families and care for children. When you combine lower income with career breaks or reduced working hours to accommodate for childcare this all adds up to a widening pensions gap in the UK» adds Megan Jenkins. “On average, women save an eyewatering 33.5% less than men by the time they reach age 65. That said, the position is improving, and regularly reviewing your pension savings can help close the gap even if you choose to take a career break.»

Risk Aversion and Investment Decision-Making

Quilter Cheviot emphasizes how women may have differing approaches to risk compared to their male counterparts. Women tend to be more risk-aware, preferring a more cautious investment strategy. While this can be seen as a prudent approach, it may limit the potential for higher returns and long-term wealth accumulation. “It is often reported that women are “more reluctant to take financial risks than men”. This may be in part because women arguably have less room for error with their finances than men, due to everything discussed above», Megan Jenkins notes. «If you take two ends of the spectrum, women make up around 50% of landlords in the UK, with property being seen as a somewhat safe investment, yet they only make up 8.5% of cryptocurrency investors.»

Although this tide may be changing, understanding how and when to take the appropriate level of risk for each individual is crucial. «Taking less risk with your investments could mean that you have a greater risk of falling short of your goals. Prioritising each of your financial objectives can help paint the picture of the appropriate level of risk to take across your portfolio. This is not to suggest taking levels of risk that you are uncomfortable with, instead, making informed choices on how much risk to take based on how this will meet your objectives» Jenkins adds.

Olivia Newmann, Private Client Manager at Brooks Macdonald, understands that Investing can be complex and disconcerting, especially during volatile periods, so guiding each client through their own financial challenge is key. “We will explore how much risk you’re comfortable taking with your money, and factor in other important considerations like the current economic climate and tax implications.» As for how to react in volatile times, Olivia adds: “We would encourage investors to stay invested through uncertain times. Investments can be volatile in the short term but can have the potential for growth in the long term. We can help with rational decision-making, keep you focused on your long-term plan and spread your risk by investing in a broad portfolio of different asset classes.»

Access to Funding for Female Entrepreneurs

 is one of many institutions that have set up specific funding for female entrepreneurs since they recognize the challenges faced by female entrepreneurs in accessing funding. «Limited access to capital has been a longstanding barrier for women looking to start and grow their businesses. Addressing this issue is crucial not only for individual success but for fostering economic growth and diversity.»

The UK Business Angels Association's "Women Backing Women" program is a commendable effort to connect female investors with female entrepreneurs. By fostering a supportive community and providing networking opportunities, this initiative aims to break down barriers and encourage more women to become active participants in the investment ecosystem. Olivia Newmann, along with other female investment directors at Brooks Macdonalds, have created “

”, an initiative aimed to “empowering women on their financial journey”. 

Despite the challenges, there is a positive shift in the financial landscape, with more women actively participating in investments. Several initiatives and platforms are contributing to this transformation, ensuring that women have the knowledge, resources, and support needed to navigate the investment world. In addition to the mentioned above, Quilter Cheviot, with Poppy Fox in the lead, have also created the “

”, a specific site where women can access information, webinars and many other resources that can help them navigate their investment journey.

Investing has many benefits in general, which is why more women should take the lead in their financial journey and start capitalizing on their money. «Investments also help to counter the effects of inflation which could reduce the buying power of your money over time. The earlier you can start saving and investing, the more potential you will have for your wealth to grow. You'll have more time to take advantage of the power of compounding.», Olivia reminds us.

It is of utmost importance to allow women to access educational pieces that will empower women financially. Quilter’s and Brooks Macdonalds’ initiatives provide valuable insights, tips, and success stories to inspire and educate women about the world of investments.

However, for those who are taking their first steps in the investment world, professional advice is key to having a successful start. “A financial adviser can help agree your goals, budget, structure your investments and ensure you use available allowances. It’s important to get the basics right and have a financial plan in place» remarks Olivia Newmann.

Megan Jenkins also adds that financial planning is individualised and, «whilst every individual will have different needs and wants, and face different challenges along the way, there are certain factors that feature more in women’s lives.» She explains that women on average live longer than men, by an average of 3.5 years in the UK, so they will need to ensure that they can sustain their retirement income for a longer period of time. «Whilst it is hard to predict how long you will need your funds to last, we can help to project forward to begin to map out your financial journey using cashflow modelling. We can also carry out financial scenario planning based on different outcomes. For example, what if you outlive your partner, or alternatively what if they outlive you? Or what if you are the sole earner? By creating various scenarios, you can have confidence that the plans you put in place will lead you on your way to achieving your financial goals, regardless of which road life takes you on.»

In several markets, women already hold significant wealth, with the potential to drive economic dynamism and resilience. Globally, women's wealth has grown unprecedentedly in the past decade. According to the 

, women now control 32% of global wealth. This is set to grow at a compound annual growth rate of 5.7% to $97 trillion by 2024.

Empowering women to take leading roles is a must across all industries, and educating women early on is key to helping them achieve leading positions. Some progress has been made in breaking gender barriers within the financial industry thanks to initiatives that promote diversity and inclusion. These are essential in creating a more balanced and representative environment, ultimately empowering women to pursue leadership roles in finance.

UN Women and the UN's Department of Economic and Social Affairs publish an annual update on progress towards SDG5, which aims to achieve gender equality and empower women and girls. This year's International Women's Day theme is 

As we celebrate International Women's Day, it is crucial to acknowledge the progress made in empowering women in the financial and investment sectors. The challenges persist, but initiatives and resources are actively working to bridge the gap. By fostering a culture of financial literacy, breaking down barriers to funding, and promoting diversity in leadership, we can create a more inclusive and equitable financial landscape for women worldwide.

Empowering Women Through Investment: Overcoming Challenges and Driving Financial Independence

Olivia joined Brooks Macdonald in 2019 and provides advice in a wide range of areas including investment planning, retirement planning, family and business protection and inheritance tax matters. She previously specialised in mortgage and equity release finance and has worked at multiple start-ups in the past.

Olivia is a member of the Chartered Insurance Institute (CII), and holds the Diploma in Financial Planning and Certificate in Mortgage Advice and Equity Release.

Private Client Manager

Olivia Newmann

Brooks Macdonald (BM) was originally formed with the desire to do things differently, an ethos that continues to influence the way they do business today. For over 30 years they have been helping people realise their ambitions and aiming to secure their future.

BM's wealth management service combines financial planning and investment management to help meet your goals. Their aim is to help you build, manage and protect your wealth, guiding you through the key financial decisions you will need to make during your lifetime.

BM is dedicated to the highest professional standards and understand how crucial it is to have trusted, expert guidance available when you need it. Located across the UK, their dedicated and experienced team focuses on making the complex simple, giving you clarity when it comes to your wealth. 

BM are always on hand to help and any initial discussion would always be free and without obligation.

Brooks Macdonald's financial planners will work with you to understand what’s important in your life. That may be providing for future generations, saving for a key milestone or investing for social good. They will discuss and agree the best way to achieve your goals by creating a financial plan based around you and your needs. Most importantly, they will guide you through the jargon and be there to support you and your family to make sure you remain on track as life changes. 

The best thing they can offer is confidence: the feeling that you don’t need to worry about your money because someone else is looking after it for you, which frees you to devote more time to focus on other things that matter most to you.

It’s never too late – or too early – to plan your financial future. What’s important is creating a financial plan that will support you for the long term.

Managing investments can be challenging and time-consuming, especially during volatile periods, but their team of investment managers have extensive experience to help cut through the complex. Brooks Macdonald will manage your investments to help you achieve your goals and will recommend a portfolio of different investments suited to your needs and risk appetite, designed to make the most of your assets.

Their investment managers will make investment decisions on your behalf. Using their centralised investment process, which ensures that each client’s investment portfolio leverages the broad and varied expertise of our asset allocation committee, investment committee and specialist sector research teams, BM can provide reassurance that your portfolio is constantly monitored by qualified professionals. 

Investing money makes it work harder than cash savings. Brooks Macdonald will keep you focused on your long-term plan and manage your investments with tax, budgets and personal circumstances in mind.

Brooks Macdonald

Stewart joined Brooks Macdonald in July 2020 to lead the UK Private Clients proposition. He is responsible for developing the UK Private Clients business by shaping and delivering the growth strategy. Additionally, he continues to advise several key clients primarily from sporting, corporate and entrepreneurial backgrounds with their broader wealth management needs.
Stewart has over 25 years’ experience of UK wealth management gained at institutions such as Lloyds Private Banking and Coutts & Co. Prior to joining Brooks Macdonald, Stewart was Managing Director at 7IM LLP, where he initially led their UK discretionary management business, before developing and leading their UK private clients business across London, Edinburgh and Jersey.
Stewart holds several industry qualifications and is a Fellow of the Chartered Institute for Securities & Investment (Chartered FCSI).


Senior Private Client Director & Head of UK Private Clients 

James joined Brooks Macdonald in 2022 to further develop and manage our professional connections and partnerships. Working closely with Stewart Sanderson, he also supports the broader UK Private Clients team.
Having relocated back to London from Geneva, James has spent over three years in wealth management with significant experience gained in both business development and broader financial planning for expatriates across Europe.
James is a member of the Chartered Institute of Securities and Investment (CISI) holding the Investment Advice Diploma.

Olivia Newmann

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Are Women Better Investors Than Men?

Empowering Women Through Investment: Overcoming Challenges and Driving Financial Independence

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Olivia Newmann

Bio

Articles from author

Are Women Better Investors Than Men?

Empowering Women Through Investment: Overcoming Challenges and Driving Financial Independence

Start your journey to your Financial well-being

FIND OUT MORE

LEGAL

CONTACT US

Start your journey to your
Financial well-being