Closing the Wealth Gap: How Women Are Reshaping the Investment World

Shriya Parvatikar
March 2025

For decades, investing has been seen as something men do — whether it is leading a big financial firm, managing investment portfolios, or even trading stocks. Women have been constantly underrepresented in the stock market and wealth-building opportunities. However, in recent years, there has been a massive shift as more women take charge of their financial futures and challenge the traditional hurdle in the investment world. These developments not only serve as significant steps in mitigating the gender gap but also prove that financial independence is not only a goal — it’s a necessity.

The Persistent Gender Investing Gap

The gender investing gap still hugely persists. According to a 2018 study held in the UK, the total value of the investments that women (aged 21-53) saved was half the amount that their male counterparts had saved ^[1]. This is a huge gap in investments considering the fact that on average, women live longer than men, yet they usually retire with less wealth which puts them at a higher risk of financial insecurity in the later parts of their age. A 2021 Women and Investing report from Fidelity Investments states that even though women’s investment portfolios often outperform men’s, only 33% of women see themselves as investors ^[2]. Why is that? Some of the possible rationale are: lower financial confidence, the gender pay gap, and a lack of representation in financial education.

Moreover, women have significantly less shares than their male counterparts. According to a 2022 report, male executives own 99 times more shares in S&P 500 companies than their female counterparts ^[3]. This is alarming since women make up a quarter of C-Suite leadership in the firms. In addition to that, women tend to have investment account balances that are 44% lower than men’s, as reported by The Motley Fool ^[4]. This is not just a mere matter of investing, it is about long-term wealth, financial security, and making sure women have the same opportunities to build a sustainable and independent financial life.

Flipping the Script of the Investment World

Good News! This gap is slowly and gradually closing as more financial tools and platforms are developing to help women all over the world to be able to invest confidently.

These platforms include the following:

– Companies such as Ellevest are specifically designed to help women build on their wealth by offering financial planning services and wealth management.

– More firms such as BBG Ventures and BRAVA are supporting female entrepreneurs and allocating money to businesses that support women’s empowerment.

– The increase in financial literacy programs such as Female Invest is helping educate women about money, making investing more widespread and accessible.

In addition to these developments, the number of women investing in the stock market has significantly improved. The Motley Fool further states that 71% of women are now investing in the stock market, a notable rise driven by the younger generations ^[4]. Additionally, as more women have started investing, studies have started to prove that women investors often achieve better returns than men. For instance, a 2024 analysis report by The Fintech Times emphasized that Australian women outperformed men by 4%. Women are also more likely to focus on being sustainable and socially responsible while investing, and promoting ethical business practices ^[5].

This notable progress can be further accelerated through these initiatives:

Promoting financial education in rural places in which women are obliged to stick to the social/traditional norms. This can amplify the number of women investing and guarantee a better future for themselves.

Closing the prevalent wage cap can address income disparity and eliminate blockages that are stopping women from investing. This way, they can gain more capital to support their investment.

Encouraging more women into leadership roles in finance can inspire others to participate and support.

As more women take charge of their financial lives, they not only secure a stable future for themselves but also challenge the traditional stereotypes that decide what women can and cannot do. The rise of investors is more than just a trend, it is a huge step that is reshaping the financial world for the better.

Sources

[1] The gender investing gap: Investments. NatWest. (n.d.).

https://www.natwest.com/investments/our-insights/gender-investing-gap.html

[2] 2021 women and investing study. Fidelity Investments. (2021).

https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/about-fidelity/FidelityIn vestmentsWomen&InvestingStudy2021.pdf

[3] Zilber, A. (2022, June 6). Male executives own 99 times more S&P shares than women: Report. New York Post.

https://nypost.com/2022/06/06/male-executives-own-99-times-more-sp-shares-than-women-repo rt/

[4] Daly, L. (2025, March 13). Women and investing statistics for 2025. The Motley Fool. https://www.fool.com/research/women-in-investing-statistics/

[5] Bleach, T. (2025, February 24). Revolut: Women investors outperform men by 4% in 2024 as Investment Gap Closes. The Fintech Times.

https://thefintechtimes.com/revolut-women-investors-outperform-men-by-4-in-2024-as-investme nt-gap-closes/#:~:text=Women’s%20investments%20outperformed%20men’s%20by,returns%20 than%20men%20in%202024.