How to get more women interested in investing

Feb 26, 2013, 03:51

Merryn Somerset Webb

Posted byMerryn Somerset Webb

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I am asked on Twitter (follow me on @MerrynSW) by the editors of what looks like it will be a great new magazine (Libertine) what I think about this Wall Street Journal article on female investors.

The basic premise is that female investors aren’t the same as male investors. Investing isn’t a hobby for them, it is a way to achieve a goal. Therefore if the industry wants to capture them as effectively as it does men, it needs to advertise a “long term goal orientated approach”.

Do I agree? I do.

Studies show that women hold more of their wealth in cash than men do; that when they do invest they do so for the long term; that they don’t trade often, and practically never spread bet; that they seek out simple investments; and (this is the good news) that as a result, their long term returns are a little higher than those of men.

But I think that the absolutely key point here is the ‘hobby’ bit. By the time they have money to invest, most women are in their 30s or 40s. They have jobs, children, houses, fragile parents and partners. They have no time for anything. Ever.

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Men very often appear to somehow find the time to spend their evenings at computers thinking about what to buy and sell (racking up the costs as they go). Women, not so much. So if they get around to investing, they need something they can buy and leave.

The WSJ piece looks at what kind of portfolios they should be sold in the US. Here, I reckon there is room for a few big funds to offer themselves up as a one stop shop to busy women.

Something for the board of Alliance Trust (a rarity in that it is a FTSE 250 firm run by a woman) to think about perhaps?

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  • 1. Boris MacDonut

    (26 February 2013, 07:13PM)  Complain about this comment

    I'd have thought some pink paper, a glass of Chablis, fluffy kittens and some new shoes might concentrate their minds.

  • 2. MichaelL

    (26 February 2013, 09:16PM)  Complain about this comment

    Easy, add an investment app to Facebook.

  • 3. Romford Dave

    (26 February 2013, 09:45PM)  Complain about this comment

    Is the financial industry actually interested in attracting female investors?

    Who wants to attract the sort of investor who rarely trades, is only interested in long term wealth generating investments she's actually thought about and one who makes money rather than accruing trading costs?

    No brainier if you ask me, the fairer sex are the last thing brokers need post RDR if for no other reason than it's not fair!

    Stockbrokers are people too....

  • 4. GFL

    (26 February 2013, 09:53PM)  Complain about this comment

    Every article about 'we need more women to .... ' is always nonsense, this article is no exception.

    A good article in my opinion would be, we need more middle class women to stop complaining about anything and everything to do with work, money, non-existent discrimination and childcare.

  • 5. Angela

    (26 February 2013, 11:40PM)  Complain about this comment

    I direct my daughters investments in their ISAs - but can I get them to take an interest?
    I told them all about the magic of compound interest. I bought them Merryns book (one of them read it) but no go, they don't really bother about it.
    They are financially literate, but it's an uphill task. Frankly, they must take after their father.

  • 6. Baxter Basics

    (27 February 2013, 09:41AM)  Complain about this comment

    I'd be over the moon if my wife got the investing bug rather than perpetually purchasing tawdry tat that inevitably end up populating the rubbish tip.

    Perhaps you should re-publish your book as "Fifty shades of love is not enough" and change the front cover to a highly pornographic picture of Sarah Jessica Parker thrashing some unfortunate sod's backside with a leather whip (I'll do this if no-one else understandably wishes to denigrate themselves). Include a free coupon for a dozen goes at www.luckypinkbingofluff.com and it'll fly of the shelves - my wife might even read it. Win-win, if I say so myself.

  • 7. Ellen

    (27 February 2013, 10:13AM)  Complain about this comment

    @5 Angela - very good!

    Perhaps it's more a case of those who have a bit of capital to invest are more likely to be tempted to explore the world of investing. And apart from those who work directly with investments, that would rule out the majority of young people and possibly a lot more women then men.

  • 8. jimtaylor

    (27 February 2013, 10:26AM)  Complain about this comment


    Women generally prefer to spend money rather than making it and the lack of trading comes more from a "bird in the hand" philosophy and a feeling that the money is there waiting to be spent.

  • 9. Bayard

    (27 February 2013, 05:42PM)  Complain about this comment

    You cannot manufacture interest; either you have it or you don't and it may just be that financial trading is something that few women are interested in, just as few women are interested in steam trains and few men are interested in sewing. Obviously, if you are an independent woman, investment is something you have to think about, but you would be doing it because it has to be done, like taking out the rubbish, not because it is something you have a natural interest in.

  • 10. NeutronWarp9

    (28 February 2013, 10:26PM)  Complain about this comment

    Just as the census is criticised for recording outdated ethnic groups and most of the world now seems to be 'British' (whatever that means scoff, scoff) if they so desire, why should we distinguish people by gender?
    If we let the girls fight on the frontline, marry each other, have kids together, etc, etc why not abandon male / female categories? Problem solved. Let's be honest, the workplace is forcing most of men into becoming feeble, PC-sheep as it is and the oestrogen in the water doesn't help!!! Sorry, it's an emotional subject.
    Oh, and men have ''jobs, children, houses, fragile parents and partners'' as well you know.

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