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The ‘gender investment gap’ is closing as the proportion of women opting for share ISAs over cash ISAs increased last year, enhancing their chances of improved investment performance as a result, says Salisbury House Wealth, the leading financial advisor.
Salisbury House Wealth says that women made up 45 per cent – 872,000 – of subscriptions to higher-return stocks and shares ISAs last year*, up from 43 per cent the year before. The total value of stocks and shares ISAs held by women stands at £42bn.
Salisbury House Wealth adds that women made up 54 per cent – 5,159,000 – of those subscribing to low return cash ISAs, totalling £53bn.
There are 11.1m women ISA investors – making up 51 per cent of all subscriptions, versus 10.5m men.
Salisbury House Wealth explains that investing in share ISAs dramatically improves women’s chances of achieving long term goals such as buying a home or contributing towards their pension.
Salisbury House Wealth says that the ‘gender investment gap’ is partly caused by financial advisers having outdated stereotypes of women as being too risk-averse for investments in shares.
Tim Holmes, managing director of Salisbury House Wealth, says: “It is great to see more women shift their money out of cash ISAs which ultimately deliver no value.”
“If investors are to make any inroads into supporting their retirement through ISAs they will have to move more money out of cash ISAs.”
“Cash ISAs are offering the lowest rates in history. Whilst shares are more volatile in the short term, they typically offer far stronger returns over the long term.”