Women and investing
Women are great investors
Yes, you heard us.
We take the appropriate risks and are less likely to invest impulsively. We focus less on short-term gains and more on long-term goals. And we typically outperform men when it comes to investment returns.
The problem is that not enough of us invest, in fact only a quarter of us do.
Let’s break down barriers, shatter stereotypes and start investing. Because we’re great at it.
On this page we explore woman and investing, but it’s not personal advice. If you’re not sure what’s best for you, ask for financial advice. The value of investments can go down as well as up in value, so you could get back less than invested.
Why investing is important for women
We get one step closer to closing the financial gender gaps with every woman that starts investing.
But it’s not just about that. We should live in a society where we’re able to live the life we want, have the power to prioritise what matters to us and the freedom of financial independence.
Investing can help us achieve this. We just need to take the first step.
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An account for every stage of your life
Before you start your investment journey you should consider if you should save or invest. Saving tends to be for the short term, and investing is for the longer term.
Keeping some money aside is a sensible approach – 3-6 months’ worth of essential expenses is about right for most people. Once you have this in place, you can consider investing.
Cash offers you security, but it may get eroded by inflation. Investing helps your money work harder, but you could get back less than you invest.
Once you've decided what's right for you, an ISA could be a good option. An ISA allows you to shelter your money from tax, while helping you achieve your goals.
Just remember, ISA and tax rules can change and benefits depend on individual circumstances. You can withdraw money from a Lifetime ISA to buy your first home, or for later life at age 60. Other withdrawals will usually mean a 25% government charge, so you could get back less than you put in.
Stocks and Shares ISA
This account allows you to put money into an ISA and use it to invest in different types of investments.
Lifetime ISA
This account can give you a boost towards buying your first property or help you save for later life. This can be opened between 18 and 39 years old.
Junior ISA
This account is for children under the age of 18 and opened and managed by a parent or legal guardian.
Cash ISA
If you’re not ready to invest, this ISA allows you to save and not pay income tax on the interest you earn.
Find out which ISA could be right for you using our easy-to-use compare accounts tool.
Tax rules can change and benefits depend on individual circumstances.
Feeling inspired?
Investments come in all shapes and sizes, but the two main things you can invest in are:
- Shares: are the heart of investing and represent a percentage of an individual’s ownership of a company.
- Bonds: are a loan to a company or government in exchange for a regular income payment until it’s repaid.
Both can be bought individually and can offer you good returns though of course performance is not guaranteed. Just be aware that they are higher risk because your investment is relying on only one company.
If you’re just starting out, then funds could be a better option. A fund pools together the money of lots of different investors, and a fund manager invests on their behalf. These investments can include various types of assets like shares and bonds, which offers more diversification.
Diversification is key, as it stops you from putting all your eggs in one basket.
Women of the wealth shortlist
Our #FinanciallyFearless ambassador Emma Wall has picked out some female run funds to take a closer look at.
Remember though the ideas are not personal recommendations and if you choose to invest, the value of the investment can fall as well as rise so you could get back less than you put in.
Women of the wealth shortlist
Our #FinanciallyFearless ambassador Emma Wall has picked out some female run funds to take a closer look at.
Remember though the ideas are not personal recommendations and if you choose to invest, the value of the investment can fall as well as rise so you could get back less than you put in.
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