Women who invest achieve slightly higher long-term returns than men, according to new analysis cited by BBC News. However, only about a quarter of UK women hold investments, compared with roughly 40% of men, a separate report shows. The figures emerge as retail investment behaviour becomes a closer focus for asset managers and financial institutions monitoring capital flows.
Teleri Evans, a civil servant from Cardiff, illustrates the potential of consistent saving. She began putting money into a Help to Buy ISA at age 25, then moved into a stocks and shares Lifetime ISA a couple of years later. By 33, she had accumulated £40,000, of which £8,000 was investment returns. Evans said she saved aggressively and lived at her mother's home for half of that period, contributing as close as possible to the £4,000 annual Lifetime ISA maximum. She used the money earlier this year as a house deposit with her partner.
The participation gap
The disparity in who invests is stark. A study by consumer finance website Boring Money found that only 26% of UK women invest, falling to 23% for women under 45. By contrast, 41% of all men invest, holding steady at 40% for those under 45.
| Metric | Women | Men |
|---|---|---|
| UK adults who invest | 26% | 41% |
| UK adults under 45 who invest | 23% | 40% |
| Cumulative returns over 3 years (Fidelity International) | 50% | 47% |
| Trading frequency (Barclays) | Around half as frequent | Baseline |
Gillian Fleming, co-founder and managing director of UK-based Mint Ventures, a women-led angel investment firm, attributed the gap largely to culture. "Men historically have been more likely to make family investment decisions, and women have also historically not owned the balance of wealth, but that is changing now," she said. Fleming added that money and wealth creation is not a topic women often discuss, and said her firm would like to change that.
Evans has observed a shift. "Investing is definitely something that women are talking about more, which is always a good thing," she said. "That's the case with my friendship group."
Returns: women outperform
When women do invest in stocks and shares, their results are often stronger. Analysis by Fidelity International found that over three years, its female personal investing customers recorded cumulative returns of 50%, compared with 47% for men. The analysis did not identify the reason for the difference.
One possible clue lies in trading frequency. Barclays data showed that women trade around half as frequently as men. Joanna Floyd, business psychologist at London-based The Work Psychologists, said studies show male investors trade more, chasing higher returns, but women actually get higher returns.
"The restraint that keeps women out of the market in the first place is the very same thing that rewards them once they are in it," Floyd said.
Floyd's point aligns with broader evidence on risk preference: women are more likely to choose certainty when faced with a financial gamble, according to the BBC report.
How women invest differently
Fleming said women are deliberately more cautious, though she prefers the term "risk aware" over risk averse. "Certainly from speaking to male investors their main focus is on the rate of return," she said.
She also noted that women tend to invest more broadly. "Men are more likely to invest in technology companies for their higher potential returns, whereas women want to invest in a broader range, from retail to food and drink, health and beauty, fem tech and creative industries," Fleming said.
Anna Macdonald, investment strategy director at Hargreaves Lansdown, agreed that women choose companies carefully. "Women appear to place relatively greater weight on where their money is going and what impact it might have, as well as the reassurance that an investment is right for them," she said.
For finance executives and institutional investors, the data on gender differences in participation, returns, and trading frequency offers a reference point for understanding retail investor behaviour across markets. The persistence of a higher return rate among women, alongside lower trading activity, may merit closer attention in portfolio construction and client segmentation strategies.
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