Outnumbered, But Not Outperformed: Women As Investors

Women are severely outnumbered by men in financial markets. Yet, according to a reliable study, they are outperforming men at investing by 1.8 percent per annum, on average.  

That performance differential can be attributed to several factors, including women’s innate ability to persevere, commit to long time horizons, and make goal-based investments. So, if women are inherently better at investments—as suggested by several other studies—what factors influence their level of participation in financial markets? 

The simplest answer: most women weren’t self-aware of their investing capability, because they never tried, or they were deprived of the opportunity. The ones who were afforded some financial agency have limited their investments to low-risk options such as savings accounts, fixed deposits, or annuities. If financial psychology is to be believed, women’s deep-seated aversion to risks—shaped by traditional gender roles in families and marriages—is a leading cause of hesitancies toward more rewarding asset classes like equities.  

In recent years, especially following the COVID-19 pandemic outbreak and the associated increase in online self-learning platforms and educational videos, women’s perception of “risks” and “rewards” in the context of investing has significantly evolved. A reliable survey centered around the MENA revealed that about 62 percent of women seek to become more active investors. Today, when opportunities to invest in high-income-producing avenues like bonds and exchange-traded funds (ETFs) are available at your fingertips, there is no reason for women to hold themselves back from channeling their inner investors.  

Turning Strengths Into Results 

Channeling their strengths will require women to first contend with barriers. It could be unconscious gender biases in households, or their own self-limiting beliefs. Furthermore, people who find themselves in a position of authority have an obligation today to advance gender equality in all walks of life. They could raise awareness about the potential benefits of women’s higher participation in investments while highlighting the missed opportunities if they park their monies in low-risk avenues like savings accounts, where wealth stagnates. 

In fact, the COVID-19 pandemic was a rude awakening for men and women alike to clearly and transparently communicate about finances. According to a study, about 49 percent of women globally are talking about inheritance with their families. That finding is of great consequence, because women often outlive men, and, if not well-versed in financial matters, they face difficulties at a time when their ability to earn and invest may have decreased. Early participation in legacy and retirement planning will enable women to make strategic and diversified investments in fixed and variable income instruments and insurance products, achieve risk-adjusted returns all through their lives, and leave an enduring financial legacy in their wake.  

Moreover, there is a strong correlation between maternity and financial planning. Pregnancy and subsequent childrearing can significantly impact women’s careers and earning capabilities, necessitating sound financial planning and a safety net beforehand. Also, researchers are of the opinion that children largely take after their mothers’ money habits. So, women’s financial activities will have generational implications for children’s money habits and success. It is safe to say that there isn’t a better incentive than that for women to build financial literacy and set good precedents for their children.  

Supporting Women Investors With Sound Financial Advice 

One of the most persistent challenges facing women investors is finding financial advisors who truly understand their goals. A study revealed that 67% of women felt their wealth managers didn’t fully grasp their objectives, often leading them to switch advisors—a cycle that can disrupt long-term financial plans and shake investor confidence. 

This is especially concerning in today’s market environment. With rising tariffs, geopolitical tensions, and increasing volatility across global markets, investors need clear, steady guidance more than ever. Women, in particular, tend to value long-term stability, personalized strategies, and sustainable investing—priorities that align with navigating turbulent markets wisely. 

And women aren’t just looking for advisors—they’re looking for advisors who listen. They consistently place a higher value on honesty, transparency, and deep financial knowledge than their male counterparts. That makes today’s uncertainty a prime opportunity for advisors and firms to stand out by building trust-based relationships tailored to women’s needs and goals. 

Policymakers also have a role to play. The economic case is clear: increasing women’s participation in financial markets could boost global GDP by 26% and unlock $160 trillion in human capital wealth. In the face of fragile supply chains and tariff-driven economic shifts, we can’t afford to leave this potential untapped. 

What’s more, 71% of women investors consider sustainability in their financial decisions, compared to 58% of men. This positions women at the forefront of impact investing—precisely the kind of long-view thinking that the current market demands. 

In short, the underrepresentation of women in financial markets isn’t just a gender gap—it’s a missed economic opportunity. And with today’s global challenges, the urgency for action has never been greater. 

About The Author 

Sumeet Gill is Vice President, Investments, at The Continental Group, a leading insurance intermediary and financial services solutions provider in the GCC region. With an impressive 23+ years of expertise in wealth management, spanning product management and sales leadership, Sumeet brings a wealth of knowledge and a forward-thinking approach to her work. Her guiding mantra, "stay adaptable, and embrace lifelong learning," reflects her dynamic and growth-focused outlook. She is empaneled with the UK’s Chartered Institute for Securities and Investment (CISI) as an International Wealth subject specialist, further solidifying her reputation as a thought leader in the field. Sumeet’s expertise, combined with her dedication to client success, makes her a trusted name in the wealth management industry.