Recent findings from Fidelity’s 2024 Women & Investing Study highlight a significant increase in the number of American women engaging in investment activities. According to the study, the percentage of women who own investments has grown by nearly 20% compared to 2023. This surge in participation is particularly notable among older generations, with the percentage of Gen X and Boomer women investing in the stock market increasing by 18% and 23%, respectively. Despite this progress, there are still underlying challenges related to confidence and financial empowerment.
Younger women, particularly those in Gen Z, continue to lead the charge in increasing their investment portfolios. However, the most striking year-over-year growth has occurred among older women. Gen X women, typically aged between 43 and 58, and Boomer women, aged 59 and above, have significantly increased their stock market participation in 2024, signaling a broadening of investment involvement across generations.
One key factor behind this growth is the increasing availability of resources and information. According to the study, social media remains a prominent source of investment ideas for many women (46%). However, the younger Gen Z demographic shows a clear preference for more personal and trusted guidance. 52% of Gen Z women turn to family and friends, while 47% rely on their own research to inform their investment decisions. Only 11% of Gen Z women consider social media to be their most trustworthy source of investment guidance, further demonstrating their preference for learning from more personal, real-world sources. This focus on research aligns with how Gen Z women view themselves—as “researchers” who want to fully understand what they own and build their investment knowledge through multiple resources.
Interestingly, despite their inclination to conduct independent research, 89% of Gen Z women have sought, or plan to seek, help from financial professionals. This indicates a balance between their desire for self-empowerment and recognition of the value that financial experts bring to wealth management.
A Confidence Gap Persists
While the increase in the number of women investors is a positive trend, Fidelity’s research suggests a continuing confidence gap when it comes to managing personal finances and making investment decisions. The study found that women are nearly twice as likely as men to describe their level of investing knowledge as “non-existent.” Furthermore, women tend to feel more overwhelmed and intimidated by investing and financial management than their male counterparts.
Despite the growing number of women taking control of their finances, this gap in confidence may prevent many from fully realising their financial potential. The research suggests that many women still feel uncertain about navigating the complexities of the financial world, which may lead to hesitations in making investments or building wealth. As women continue to gain access to investment tools, education, and resources, tackling this confidence gap will be crucial for empowering them to make informed and assertive financial decisions.
A Global Shift: Women Investors in India
While women in the United States are making strides in investing, other parts of the world are also witnessing a shift in women’s involvement in managing finances. In India, for example, women have become increasingly active in managing their financial portfolios. According to a March 2024 report by the Association of Mutual Funds in India (AMFI), the share of industry assets owned by women investors has grown significantly, from 15% in March 2017 to nearly 21% by December 2023.
This growth reflects broader trends in women’s empowerment across India, where women are not only taking on more active roles in financial management but also gaining greater financial independence and decision-making power. This shift is seen in both urban and rural areas, as more women understand the importance of managing their finances, securing investments, and planning for long-term wealth.
Investing Trends in Europe: A Mixed Picture
In Europe, the investment habits of women show a more nuanced picture. According to a report by N26, European women invest 29% less of their monthly income on average than men. This disparity could be attributed to a number of factors, including wage inequality, societal expectations, and a lower level of investment education. Women, particularly in countries with strong gender income gaps, may have less disposable income to invest, which can limit their ability to accumulate wealth through investments.
This trend underscores the need for more targeted financial education and access to investment tools that help women maximise their investment potential, regardless of their income levels. Financial institutions and governments can play a key role by addressing the systemic barriers that prevent women from investing and building wealth at the same rates as men.
As women continue to take control of their finances across the globe, social, economic, and institutional support will be essential to ensuring they are equipped with the tools to thrive in an increasingly complex financial landscape. With the right support and encouragement, women can continue to close the investment gap and take their place as equal participants in wealth creation on a global scale.
