How can women can stop lagging men in investing?

When it comes to investing, studies show that women are far less confident than men. Women tend to focus on short-term savings rather than building wealth through investing. Women leaders at Sanlam Investments – an asset manager firmly committed to democratising investing to foster greater inclusivity – feel passionate about changing this. This Women’s Month, six women from Sanlam Investments share their views on how we can galvanise more women to invest and grow wealth. 

Chantelle Pretorius, Credit Portfolio Manager, Sanlam Investments

Would you say that women have very different attitudes toward money than men?

Absolutely. On average, women are more risk-averse than men. Generally, women focus on ‘wealth-preservation’, rather than ‘wealth-accumulation’. While women might save a larger percentage of their salary than men, their investments tend to be in lower-risk assets such as cash. Understanding this disparity and engaging with women on the benefits of a well-diversified investment portfolio is critical in ensuring that women are well-prepared for retirement.

In a future world where women are confidently investing and growing wealth, what would the knock-on effect be on the rest of their lives, careers and society at large?

Women prefer to align their investments with their personal values. Some studies have found that investing in ways that benefit the planet and have a positive effect on society are more important to women than absolute returns. Issues such as education, healthcare and employee welfare are important considerations for women when deciding where to invest. The concept of ‘responsible investing’ should increase the percentage of female investors, which in turn will mean that women will have a larger say on corporate behaviour and, ultimately, drive environmental and societal change.