Have you ever thought about becoming an investor? It can be a great career but it’s too often a place dominated by men. We see men all over the screen on commercials and new reports featuring wall street.
In fact, increasingly the finance industry isn’t like that. Many women investors can transform the world we’re living in.
So where should you start if you are considering issues surrounding gender diversity and how to have the mindset to invest like a woman?
Here’s everything you need to know.
Charities That Can Help
Girls Invest was founded in 2015 as a non-profit organization and continue to invest in the professional future of young women in the financial services industry.
Girls Invest is a not-for-profit organization founded in 2015 by financial expert Seema Hingorani with an ambitious mission: women should manage 30% of the world’s capital by 2030.
The programs offered by the organizations are designed to stimulate interest and motivate young women to become involved in investment management and larger financial services sectors.
If you’re thinking about where to begin then you should consider reaching out to Girls Invest or even someone like Elizabeth Edwards who might be to help.
Websites
If you want to incite more women into investments start with a place where they can be empowered to respond to your message. Websites like Ellevest, a personal financial blogger and adviser, encourage women to learn how to invest and help themselves build wealth.
A growing group of women believes that women should be empowered and confident investors who know there is an opportunity to invest their money and that more money should be invested in local communities and other women-driven businesses around the planet.
Female Empowerment
The market for women investors will explode as millions of women gain more power. If women achieve parity in the number of investors and funds invested, the consequences will be stratospheric in terms of equality in the environment, the investment industry, and pension systems.
If women are better investors than men and outperform their male counterparts in terms of returns on their investments, their share of wealth will rise. If they get higher returns on their money, this means they will be able to share much more in other assets, such as real estate.
According to the Boston Consulting Group, women are expected to own 32% of the global wealth by 2020 or $7.2 trillion.
Women make up 50% of the population but control only 30% of the wealth. This is a staggering stat when it comes to gender diversity and securing wealth.
This means that women make the vast majority of decisions about how their money is invested and which organizations and concerns they support.
Wealth Transfers
More than 50% of all money in the United States or $68 trillion is expected to flow to the next generation.
As well as an increase in women’s wealth, the retirement of the Baby Boomers has led to one of the largest wealth transfers in US history, with Generation X and Millennials expected to become the richest generations in the coming decades.
As women make increased financial decisions for the household, more women turn to investment decisions. They tend to invest ethically. The desire to achieve lasting social and environmental impacts through their investment decisions is particularly strong among young women.
In a recent Morgan Stanley study 84% of women said they were more interested in sustainable investments that are not only aimed at financial returns but also on social and environmental goals.
Sustainability and Environmental Issues
More women, in general, are concerned with ESG investments than men. According to Cerulli, a research firm found wealthy women will seek financial advice whereas fewer women invest than men.
Both women and men are attracted to investments that have positive social and environmental impacts. Morgan Stanley found when it comes to investing in funds, 84% of women say they are interested in investing in something that has an impact on sustainability compared to 67% of men.
Money managers try to attract and serve rich women so that they can express their values through their portfolios – and the impact is felt across the investment industry.
Whether women choose to invest in themselves or raise their children, the legacy of investing and philanthropy is one of the most important aspects shaping our world today.
A Lasting Impact
While women make financial decisions that have a lasting impact on the world and the environment, the overall performance of small businesses, large companies need to step up their efforts.
Many wealthy women are eager to invest their money as millennials, looking for options that are good for the environment as well as financial gains. At the Australian shareholders association, Smits believes the investment could be ground-breaking as more women seek higher returns on their money.
Women Investors Can Change the World
What is interesting is the diversity of approaches that women investors bring to their investments. The impact that impact investments have on the broader, traditionally male-dominated financial industry is profound. Most women want to use their money for good causes.
Although women influence 83% of consumer spending and make money management decisions in our house, only 13% of women are responsible for long-term investment decisions.
By refusing to give women investors back control of big investment decisions, we perpetuate this system. It seems that the more we invest in females and the more they invest the better off we are all.
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