For an industry dominated by men, investing holds a surprising secret: women often outperform their male counterparts.
In finance there has always been a lot of focus on men. Around 87 per cent of fund managers are men, according to Citywire. Until recently, our chancellors in the UK had all been men and, traditionally, men handled the money in households.
It wasn’t until 1975 that women could even open a bank account without their husband or father’s signature, let alone thinking about starting to invest.
Dig into the data though and women tend to be stronger investors. Research by AJ Bell found that women hold more ISAs than men. Plus, when women invest they tend to outperform men. Barclays tracked 2,800 of its investment customers and found that female portfolios gained 1.8 per cent more a year than those held by men.
So, what can we learn from women’s investment habits?
Trade less
Men, typically, are more active traders than women; in other words, they buy or sell more often. Data from AJ Bell shows that, on average, men make 12 trades per year whereas women make 25 per cent fewer trades.
Women also tend to react less emotionally to their investments, holding on through market volatility.
Danni Hewson, head of financial analysis at AJ Bell, said: “This suggests less fiddling with portfolios after making their investment decisions at the outset, resulting in the side benefit of paying less in fees and reducing the risk of falling foul of market volatility.”
While we all need to adjust our investment portfolios from time to time, resisting the urge to constantly tinker will cut the amount of fees you pay and could help you avoid crystallising losses in a market downturn.
Save consistently
Figures from HMRC show that women hold more in cash ISAs than men.
“And that’s despite earning less on average because of the gender pay gap, being more likely to take career breaks to care for children or elderly relatives, paying more for certain goods and services, and often having far less linear career paths,” says Maike Currie, VP Personal Finance at PensionBee.
“Women tend to approach saving with diligence, long-term goals and consistency.”
These are all great habits to help you build a financial safety net. Putting a set amount into savings regularly makes it a routine that then becomes automatic. Having clear long-term goals for your money can also make it easier to stick with a savings plan.
Diversify investments
Women also tend to take a more diversified approach to investing. A study by Warwick University found that women usually invest in funds, while men are more likely to hold individual shares.
Fund managers investing across multiple businesses, sectors and regions provides built-in diversification. This can help smooth returns and make portfolios more resilient during periods of market volatility.
Investing in individual shares is far riskier, as your returns are tied to the fortunes of just one company – even if that firm trades around the world.
Spreading your money across a range of assets – funds, bonds and shares – as well as different geographic regions and sectors can help protect your portfolio when markets fall. One part of your portfolio may struggle while another soars, smoothing out the bumps.
And what women can learn from men: invest, invest, invest
While women may display many strong investing habits, the problem is they simply aren’t participating enough.
Men hold nearly 500,000 more stocks and shares ISAs than women, according to AJ Bell, with many women keeping their savings in cash instead.
“That reflects a more cautious approach: cash feels safe, while investing involves risk,” says Currie.
“The problem is that over the long-term, excessive caution can come at a cost. Keeping money in cash may feel secure in the short-run, but it risks losing purchasing power to inflation and missing out on the growth that the markets have historically delivered.”
The good news? The gap between male and female investors is shrinking. Research from Boring Money shows that the number of women investing has risen by 10 per cent in the past year and the gap between total wealth invested by men and women has narrowed by 15 per cent.
PensionBee has also seen encouraging signs, with women paying more into their pensions than men in January for only the second time in the company’s history.
“There are genuine green shoots of hope,” says Holly Mackay, founder and CEO of Boring Money. “The number of women investors has grown, which is encouraging.”
But there is still a long way to go. The gender investment gap still stands at £574bn. Women need to embrace investing and put the good habits they already have to work, growing their wealth for the long haul.
When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
Read The Independent’s influence list for International Women’s Day 2026 here.
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