Dubai, United Arab Emirates: StashAway is making rapid pace in closing the gender investment gap. Clients who identify as female now make up 40% of StashAway's new client base in the Middle East, up from 16% from our launch in November. Compare that to Singapore, which took 5 years to reach gender parity from 17% of female investors at launch.
The finding comes from the company’s annual report, StashAway Insights 2022, which collates investment behaviour data from its client base across the Middle East, Singapore, Malaysia, Hong Kong, and Thailand.
Key observations from the report also revealed that:
- Women tend to choose lower-risk portfolios compared to men. While lower-risk investments may experience less short-term volatility than higher-risk portfolios, in the long term, they’re less likely to produce greater financial rewards.
- Women check their investments 1.5 times less than men, making them more consistent investors. StashAway data shows that those who check their investments frequently are more likely to react impulsively to short-term market volatility. This can often result in investors withdrawing their funds from the markets prematurely.
- Women are more likely to stay invested over the long term. Staying invested over the long term helps investors reap compounded returns and benefit from long-term market growth.
However, although women tend to show long-term, consistent investing behaviours, not enough of them are investing. Almost 60% of women aren’t engaged in investing or retirement planning, and 58% defer their long-term financial planning to their partners .
Nandini Joshi, Chief Operating Officer, says: “It’s imperative for women to take charge of their financial well-being, as they’re more likely to live longer and take time off work to look after their families. Closing the gender investing gap is one of the most impactful ways we can improve wealth equity. StashAway strives to do that by providing access to high-quality, affordable, and intuitive wealth management for everyone.”
Ramzi Khleif, General Manager, StashAway MENA adds, “The results from StashAway Insights 2022 are highly encouraging for investors in the Middle East – but it’s just the start. That’s why we’re maintaining a strong focus on providing free financial education. One way we’re doing this is through She Invests, our focused initiative for women, which covers topics ranging from personal finance and investing basics to crypto and NFTs.”