Recent studies show that while women investors in the UK enjoy slightly higher long-term returns than men, their participation in investing remains considerably lower.
Over the last few years, women have achieved better investment outcomes than their male peers. However, only approximately one-quarter of women in the UK are active investors, while the figure rises to almost two-fifths among men. This difference is starker among those under 45: just 23% of women in this age group invest, compared with 40% of their male counterparts.
Participation Lags Despite Stronger Returns by Women
Research from Fidelity International reveals that women using their platform saw cumulative returns of 50% over a three-year stretch, narrowly ahead of the 47% returns achieved by men during the same period. Although the study didn’t provide specific reasons for this gap, variations in investment behaviour present possible explanations.
Further findings from Barclays show that women typically trade about half as often as men. By trading less, women display more patience and risk sensitivity, two attributes frequently linked to better investment results. Joanna Floyd, business psychologist at The Work Psychologists, says that men’s preference for frequent, high-risk trades often works to their disadvantage, while women’s more restrained approach pays off once they enter the investment arena.
According to Jemma Slingo, pensions and investment expert at Fidelity International, women often align their investing with clear, personal priorities—such as funding an emergency fund or securing financial support for children—factor that may foster disciplined strategies.
Preferences, Challenges and Underlying Barriers
Gillian Fleming, co-founder and managing director of the women-led angel investment group Mint Ventures, highlights that cultural forces drive women’s underrepresentation in investing. Traditionally, men have overseen financial decisions and controlled most wealth within families. Nevertheless, Fleming observes a positive shift as more women start to talk about investing in their immediate circles.
There are also noticeable distinctions in investment categories between genders. According to Fleming, male investors are more likely to target technology firms because of their potential for rapid expansion. Female investors generally show interest across a broader range of sectors, including retail, food and drink, wellbeing, fem tech, creative fields, and health and beauty. Anna Macdonald, investment strategy director at Hargreaves Lansdown, agrees, noting that women often weigh both the potential impact and appropriateness of their investments, in addition to financial returns.
The gender pay gap compounds this imbalance. Since women tend to earn less, they face greater difficulties setting aside funds for investment. This structural issue further widens the gap in investment rates between men and women. For more on this, see the report on the gender pay gap.
Future Directions: Broadening Investment Opportunities
Specialists interviewed for the report stress the need for the investment industry to better tailor its offerings for women, making the process more accessible and engaging. Macdonald notes that enhancing inclusivity would boost women’s financial security over the long term and deliver overall benefits to the UK economy.
An example of positive change is seen in Cardiff civil servant Teleri Evans, who began investing at age 25 with a Help To Buy ISA and later expanded to a stocks and shares Lifetime ISA, eventually amassing £40,000 by the age of 33—including £8,000 gained from investments. Evans attributes her progress to focused saving and increased openness about investing among women. “Investing is definitely something that women are talking about more,” she observes, “which is always a good thing.”
To explore related topics, see: Financial gamble: Approaches by gender.