A new global survey from social investment network eToro has today unveiled that four out of five global female investors are confident they’ll reach their desired income in retirement if they continue with their current investment strategy. Nearly one in five (18 per cent) of the female investors surveyed say they’ll reach this goal within the next five years.
Of the global women surveyed, 72 per cent invest at least monthly, and overall 16 per cent invest a third (30 per cent) or more of their monthly income. They invest to attain financial independence (15 per cent), supplement their income (14 per cent), generate a one off payment (11 per cent), supplement their lifestyle (10 per cent), and outperform their savings (9 per cent).
As for why they started, global female investors did this to generate extra income (55 per cent) and to counter low interest rates (46 per cent). More than a fifth (22 per cent) cite ‘long-term security’ as the main reason they began this journey. For 21 per cent, achieving financial independence in order to retire early is their number one motivation.
In Australia, around 41 per cent of female investors also claim to invest monthly, and 59 per cent invest up to 15 per cent of their monthly income. Compared to their global counterparts, most Aussie women invest to achieve financial independence and long-term security (both 22 per cent). Interestingly, Aussie female investors are less motivated to retire early (7 per cent), instead aiming to help fund their retirement alongside a pension (10 per cent).
eToro’s Global COO and Deputy CEO, Dr Hedva Ber comments: “Female investors are using investing as a powerful lever to secure their futures, boost income, and/or to build net wealth. It is clear from the research that female investors are carving out their own future, and building for the long-term, something which is to be celebrated.
“Women clearly want to improve their finances, and crave more education around investing. We need to respond to the calls for more female role models and ensure they represent the diversity of women who could benefit from knowing more about investing. Financial education is key and while progress is being made there is more work to do. We have a responsibility to make a positive difference to women’s lives now and in the future.”
The most popular investment held by the global female investors surveyed was domestic stocks (41 per cent) followed by cryptoassets (36 per cent), domestic bonds (25 per cent), foreign stocks (23 per cent), alternative investments (23 per cent), cash (21 per cent), commodities (14 per cent), foreign bonds (13 per cent) and currencies (11 per cent).
Global female investors plan to invest in cryptoassets (35 per cent), domestic stocks (32 per cent), alternative investments (28 per cent), foreign stocks (23 per cent), domestic bonds (22 per cent), commodities (21 per cent), cash (17 per cent), foreign bonds (14 per cent) and currencies (12 per cent).
Down Under, the most popular investments held by Aussie female investors include domestic stocks (48 per cent), cryptoassets (45 per cent), cash (26 per cent), alternative investments (24 per cent), foreign stocks (21 per cent), commodities (14 per cent), domestic bonds (13 per cent), currencies (11 per cent) and foreign bonds (8 per cent).
More than half the global female investors surveyed cited the need for more female role models (including 64 per cent of Aussie female investors). Commenting on the research, Heloise Greeff, an eToro Popular Investor, said: “I started my investing journey on eToro to gain financial freedom to be independent of society’s expectations of me as a woman. Although imposter syndrome prevented me from starting sooner, I have since learned that I am capable of much more than I could imagine. Investing has taught me patience, discipline, and focus. More importantly, it has given me the means to control my future and grow my money for my family and me.
“I believe financial equality is the final frontier of true equality. I hope that my example can ignite courage for other women to take the first step toward financial gender equity.”
The consequences of the pandemic continue to be felt with 53 per cent of global female investors saying it’s had an impact on their investment habits, and almost a third (30 per cent) feeling more pressure to improve their financial situation; whilst 29 per cent say they now need a savings pot, and 24 per cent say they are now focussed on a long-term financial goal.
Aussie female investors mirrored this sentiment, with 56 per cent confirming the pandemic had an impact. As a result, 33 per cent now have less disposable income, 31 per cent feel the need to improve their financial situation, 27 per cent have realised the need of a savings pot, and 26 per cent have a long-term financial goal to build towards.
In other global findings:
- Nearly a fifth (22 per cent) of global female investors began investing three to five years ago; 11 per cent started six to 10 years ago and nearly half (47 per cent) of female investors started two years ago or less.
- Global female investors believe the best investment opportunities over the next three months will come from green energy and renewables (36 per cent) followed by technology stocks (35 per cent).
- Global female investors lean heavily on personal recommendations for information on how and when to invest, with nearly one in two female investors (47 per cent) turning to friends, family or colleagues for insight.
- 76 per cent of global female investors regard investing as part of their household financial management; 63 per cent have majority or full control of their household finances.
In other Australian findings:
- 74 per cent of Aussie female investors count investing as part of their household budgets.
- Aussie female investors believe the hardest things about investing include knowing what to invest in (31 per cent), knowing where to go for credible information (18 per cent), and knowing where to start (12 per cent).
- Aussie female investors believe the best investment opportunities over the next three months will come from technology (39 per cent), green energy and renewables (39 per cent), healthcare (32 per cent), real estate (32 per cent) and financial services (18 per cent).
- 32 per cent of Aussie female investors plan to invest for over a decade or more.
Survey research conducted by Appinio from 4th February – 15th February 2022. 9,504 female retail investors sampled across 14 countries. 1,000 in each: UK, US, Germany, France, Spain and Australia. 500 in the following: Italy, Sweden, Netherlands, Poland, Romania and the Czech Republic, Denmark (319) and Norway (185). Female investors were defined as those who held investments such as bonds, funds, cryptoassets, currencies, equities, FX and cash linked to stock markets. They did not need to be eToro users.
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