Women Are Often Better Investors Than Men — So Why Do Fewer of Them Invest?

New research shows that women who invest their money tend to earn slightly more over time than male investors. Yet only about one in four women in the UK invests at all, compared to about four in ten men. Experts say this gap has to do with culture, confidence, and the fact that women still earn less than men on average. The findings raise an important question: if women are better at investing, why aren't more of them doing it?

One woman who started early is Teleri Evans from Cardiff, Wales. She was 25 years old when she opened a savings account called a Help To Buy ISA. A couple of years later, she started putting money into a stocks and shares Lifetime ISA, which is a special savings account that can be invested in companies. By the time she was 33, she had saved £40,000 in total — and £8,000 of that was money her investments had earned on their own.

Teleri saved as much as she could, up to £4,000 a year, and even moved back in with her mum to cut costs. She used her savings to help buy a house with her partner earlier this year. Her story shows what is possible when someone starts investing young and sticks with a plan. 'I saved aggressively, and lived at my mum's for half of that time, so I could save as close as possible to the maximum £4,000 per year into Lifetime ISA,' she says.

A study by a website called Boring Money found that only 26% of UK women invest. That number drops even lower, to 23%, for women under the age of 45. By comparison, 41% of men invest, and that figure stays around 40% even for younger men. This means there is a clear gap between men and women when it comes to putting money into investments.

So why do fewer women invest? Gillian Fleming, co-founder of a women-led investment firm called Mint Ventures, says the answer is largely about culture. Historically, men have been more likely to make money decisions for families, and women have not always owned as much wealth. 'Money and wealth creation is not a topic that women often discuss, and we would like to change that,' she says.

When women do invest, they often do very well. A study by the financial company Fidelity International looked at its own customers over three years. Female customers earned returns of 50%, while male customers earned 47%. That may sound like a small difference, but over many years it can add up to a lot of money.

One big reason women may do better is that they tend to buy and sell investments less often than men. Data from Barclays bank shows women trade about half as frequently as men. Business psychologist Joanna Floyd says this is because women tend to be more patient and more careful about risk. 'Studies show that male investors trade more than women, chasing higher returns, but women actually get higher returns,' she says.

Women also tend to think more carefully about where they put their money. Fleming says women are more likely to invest in a wide range of industries, from food and drink to health and beauty. Men, she says, are more often drawn to technology companies because of the chance for big, fast profits. Anna Macdonald, an investment expert at the company Hargreaves Lansdown, agrees that women choose companies with more care.

Women investors are also more likely to connect their investments to real-life goals. Jemma Slingo from Fidelity International says female investors often invest to build emergency savings or to look after their children's futures. This goal-focused way of thinking may help them stay calm and avoid making rushed decisions. That patience can be a powerful tool in investing.

It is also worth remembering that women in the UK generally earn less money than men because of the gender pay gap. This means they simply have less money available to invest in the first place. Experts say the investment industry needs to work harder to make investing feel welcoming and relevant to women. Macdonald says that doing so 'would be good for women's long-term financial resilience and for the UK economy.'