'I started in my 20s and made £8,000': Why women are often better investors than men

A recent study reveals that women tend to outperform men in long-term investment returns, despite a lower participation rate. Teleri Evans, a civil servant from Cardiff, began her investment journey at 25 by opening a Help To Buy ISA and later a stocks and shares Lifetime ISA. By 33, she had accumulated £40,000, with £8,000 in returns on her investments. Evans attributes her success to aggressive saving and living at her mother's home to maximize contributions to her Lifetime ISA.

According to a report by Boring Money, only 26% of UK women invest, compared to 41% of men, a figure that remains consistent among those under 45. Gillian Fleming, co-founder and managing director of Mint Ventures, a women-led angel investment firm, attributes the disparity to cultural factors. Men historically have played a more significant role in family investment decisions, while women have had less access to wealth. However, Fleming believes this is changing, with more women discussing money and wealth creation.

Fidelity International's analysis of female personal investing customers found that they recorded 50% cumulative returns over three years, compared to 47% for men. Joanna Floyd, a business psychologist at The Work Psychologists, suggests that women's cautious approach to investing could be the reason for their higher long-term returns. Women tend to trade less frequently than men, possibly due to their risk-averse nature.

Women also appear to invest more broadly, focusing on various industries like retail, health, and creative sectors. Investment strategy director Anna Macdonald at Hargreaves Lansdown notes that women consider the impact and alignment of their investments with their values and goals. However, the gender pay gap leaves women with less money to invest, and the investment sector must work to make investing more accessible, relevant, and connected to personal goals and values.