Female investors rely on friends and family for advice

Female investors rely on friends and family for advice

Nearly half of female investors rely on personal recommendations for how and when to invest, a study has shown.

Some 49 per cent of female investors in the UK said they turned to friends and family for investment advice, according to eToro.

Of the 1,000 investors surveyed by Appinio in February, 50 per cent said they started investing over the past two years, with 30 per cent saying they realised during the pandemic that they needed a savings pot, and half saying they started investing to counter low interest rates.

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The women were confident that their portfolios would provide what was needed, with 78 per cent saying their current investment strategy would give them enough income in retirement.

This was despite half of these women only started investing in the last two years.

UK domestic stocks were the most popular assets held by those surveyed, with 40 per cent saying they owned UK firms.

Cryptoassets and UK bonds were joint-second with 32 per cent, cash was 31 per cent and foreign stocks were owned by 23 per cent.

The investors believed the best investment opportunity over the next three months would come from green and energy renewable stocks, followed by US tech stocks, specifically Meta, Apple, Microsoft, Amazon and Alphabet.

Hedva Ber, deputy chief executive officer, eToro, said female investors were looking to savings to secure their futures, boost income, and build their wealth, however she said women needed better role models in financial services.

“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, she said. 

“We have a responsibility to make a positive difference to women’s lives now and in the future.” 

A fifth (19 per cent) of those surveyed said funding retirement was their primary investment goal, while 18 per cent said long-term financial security was their aim.