Women who receive financial advice are significantly more likely to invest in equities, according to new research from M&G.
The report, “The Untapped Potential of Women’s Wealth”, shows that 49 per cent of advised women invested in equities over the past five years, compared to just 28 per cent of those without advice, while men are more inclined to invest in equities regardless of whether they seek advice.
The report also found that women are more concerned about losing money than men. Around 61 per cent of women fear a financial crash, compared to 46 per cent of men. Similarly, 68 per cent of women are concerned about market fluctuations, compared to 54 per cent of men. According to M&G, these worries are highest around age 35, which is often when people begin to seek financial advice.
Among advised investors, 65 per cent of women still worry about a market crash, compared to 51 per cent of men. Only 39 per cent of women expect stock prices to rise, compared to 48 per cent of men. Additionally, more women anticipate prices will fall.
The report found that 67 per cent of women prefer “smoothed” funds, which aim to reduce the impact of market changes. That number rises to 82 per cent for women who get advice. Men also show interest, 62 per cent overall and 79 per cent of those with advice.
The study also shows that both men and women want more access to private investments like real estate, infrastructure, and private companies. These have mostly been available to large investors, but 81 per cent of advised women and 77 per cent of advised men said they would invest in these if made easier to access.
M&G director of PruFund Proposition Kirsty Wright says: “Our research reveals fascinating insights into investing behaviours. Initially, some women may question the benefits that advice can bring and want to better understand the need to include risk assets in their portfolios. However, once they’ve developed their understanding, they become successful, long-term, composed and risk-focused investors.
“Tailoring the investment experience to respond to a wider range of perspectives and greater concerns around volatility and losses can present new opportunities for advisers to engage with clients. While it may not change the long-term outcome that advisers work to achieve, it could have consequences for the investing experience that a wider client base of investors want to have in reaching their goals.
“Addressing market volatility concerns is essential to ensuring customers feel confident in achieving their financial goals. Recent market turbulence, as a result of US trade policy, demonstrates this more than ever and signals how the wealth industry can continue to evolve its approach.”
