Why are there such inequalities?
Before we look at the benefit of more female investors, let’s look at what has caused this disparity.
1) A commitment problem: According to a study conducted by JP Morgan, 64% of women do not feel confident investing and consider the process complicated.
2) Income problem: Women tend to believe that they need more money than they actually have in order to invest, so there is an urgent need to clarify this myth.
3) The risk issue: According to a study by BNY Mellon, almost half of women (45%) feel that investing their money in the stock market is too risky for them.
Women in impact investing
Socially Responsible Investment (SRI) consists of excluding sectors considered harmful to society or the planet and is often linked to the investor’s ethics. This is how “negative screening” was born, this term allows to limit the damage without acting in favour of the causes. Therefore, in order to respond to major global concerns, it is essential to integrate a third dimension into asset allocation decisions, in addition to return and risk: impact.