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How to Invest as a Woman

Updated: Jan 25, 2022

For too long investing has been a man’s game. We only see men doing it, only hear men talking about and don’t even get us started on the way investing is advertised and marketed to appeal to men more than women. But this International Women’s Day (8th March), we are choosing to challenge that.

There is a very well known fact that women are better than men at investing. In fact, studies show the investing returns of women are nearly 2% higher than the returns of men. And there are a number of reasons for this. Firstly, women are more cautious with their investments - they trade less frequently, hold shares for the longer term and spread the risk. Women also educate themselves more about investing and know that they aren’t in control of the whole process, as opposed to trying to control every variable possible.

But the sad thing is…women don’t invest. In 2019, only 43.5% of the 2.2 million stocks and shares ISAs in the U.K. were held by women.

So, you’re thinking…how as a women do I get involved in this ‘investing’ thing?

Normalise it

Investing should be a very normal activity, just like going to the gym or going to a restaurant. For men, investing is a very very normal activity - just like breathing. And you see this through the way men interact with each other on the topic.

In years to come, this article should no longer be needed as we hope investing as a woman will become the norm. But for now a great first step to get there is by speaking to your girl friends about investing. When last did you speak to your friends about money? Or investing? Send over a message to your group chat…'Has anyone thought about investing?' Next time you’re talking about saving money or spending too much money - talk about investing!

Additionally, with the rise of robo-advisors and the democratisation of investing, it is no longer a thing for just rich men. Given you can invest with as little as £1 (we’ll talk more about this later), it can become as normal as online shopping.

Improve your knowledge

We get it. Investing is full of complex language served with a side of unnecessary jargon. But the good thing is, it has been proven that women are more likely to become educated in an area before making any decisions.

Some of our favourite ways to gain Investing knowledge are...

1. By listening to a podcast:

2. By reading a book:

3. By subscribing to the news:

By consuming content on Instagram (be careful with this one as not all Instagram ‘investing’ content can be trusted):

Knowledge is power. And with improved knowledge comes improved confidence to invest.

Join Investing communities for females

There’s nothing better than being surrounded by like minded females. Being in a community of women who are all on their investing journeys will allow you all to share your experiences. It’s a place where you can speak to others for genuine help, advice and be vulnerable without any shame. There is a great sense of empowerment when we are able to speak and learn from other women.

Refinery 29 have a great group on Facebook and watch this space for a Fempire Finance community - coming soon.

Investing is dominated by men. There are more funds ran by men called David than there are ran by females. So seeking advice from women is a must!

Invest your small change

Sadly, it’s a well known fact that there is a massive gender pay gap between men and women. On average, for every £1 a man earns, a woman makes 83p.

However, at Fempire Finance we are choosing not going to be let down even further by society and its poor ways of paying women. With so many investing platforms permitting investing from small amounts of money such as £1 or £10, or letting us invest our spare change, we are hoping to shatter the fact that 40% of millennials feel they don’t have enough money to start investing in the stock market.

It doesn’t matter how much you have to invest, it matters when you invest. And the answer is, the earlier the better. By starting investing earlier you are taking advantage of compound interest (the notion that your money earns money over time).

Use your risk adversity to your strength

Women are great at creating a more diversified and balanced portfolio. Whereas men trade more frequently and don’t spread their investments out as much. As women entering the investing world, we are often told by men how to invest, but there are strong inherent qualities within women that make us great investors.

Stick to your gut, girl.

Invest to improve the world

The unique values and beliefs you hold are individual to you. As a community of women, Fempire Finance is passionate about having a positive impact on the next generation of women. Which is why investing in companies that reflect our interests is vital.

We are currently loving the Wombat Invest Women in Power Fund. Which is Europe’s first Exchange Traded Fund (ETF) that bundles shares of companies that are leaders in gender equality. An ETF is a basket of shares from many different companies that can be traded throughout the day. The Women in Power fund allows you to easily invest in some of the world’s most successful companies and make a positive impact on the world.

Happy Investing!

Disclaimer: Invest at your own risk. Investments can go down as well as up.

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