It also uncovered a significant bias in how investment products are targeted to customers.
A survey of over 8000 individuals, including 100 asset managers, revealed three major barriers holding back women’s investments:
- Money – Women globally believe they need an average of $4,092 per month of disposable income ($50K per year) before they can start investing.
- Risk – Only 9% of women said they have a high risk tolerance for investments, 49% have a moderate risk tolerance and 42% have a low risk tolerance. Women tend to recognize that investing is inherently high risk.
- Confidence – Globally only 28% of women feel confident in investing. The report calls on the industry to do more to inspire and involve women to invest.
“Given the research, it is clear that increasing women’s participation in investing is critical to their personal prosperity and helps shape a more equitable future for all,” said Heineke Smuts, CEO of BNY Mellon Investment Management. . “Doing so will also potentially help increase the allocation of capital for the benefit of society and the environment.”
women want their money to do well
One of the key findings of BNY Mellon’s Pathway to Inclusive Investment study is that women – like a growing share of all investors – want their investments to be good.
The survey found that 55% of women would invest (more) if the impact of their investments align with their personal values, and 53% would do so in a fund with a clear purpose for the good.