If women were to invest at the same rate as men, $3.2trn would be injected into the asset management industry. Current assets are estimated by BNY Mellon Investment Management at $100 trillion. A drop in the bucket? Surely not, especially if we consider that out of the $3,2trn, $1.9trn would be directed towards responsible investments.

What is it that holds women back from investing in the financial markets to the same extent as men?

Between lack of confidence and fear of risk

Firstly, a lack of confidence. Only 28% of women feel confident enough to invest some of their money, said the BNY Mellon report.

The study shows that women are the most confident in India and Brazil, with percentages of 47% and 46% respectively. In Europe, the rates are around 25%, with France at 20% and Italy at the bottom of the league at 18%. Only Japan does worse with a confidence rate of 15%.

They then set the bar a little high: on average and worldwide, women think they need $4,092 of disposable income each month--or $50,000 a year--before they can start investing some of their money, the study notes. This goes back to one of the most common stereotypes that if a man invests, a woman saves.

$50,000 per year is well above the world average in terms of disposable income. In the United States, the bar is even higher at $6,000. By comparison, it is $550 in India and $1,400 in Brazil.

The final barrier is risk appetite. According to the survey, 45% of women say that investing money in the stock market--either directly or in a fund--is too risky for them. Only 9% of women say they have a high or very high risk tolerance when it comes to investing. 49% have a moderate risk tolerance and 42% a low risk tolerance, BNY Mellon found.

Reflecting a less inclusive sector

Other “external” barriers exist.

86% of asset managers admit that they primarily target men with their products. 73% of asset managers say that their organisation’s investment products are primarily targeted at men, suggesting that they focus on the benefits and features that generally attract men more than women.

According to BNY Mellon Investment Management, fostering inclusive investment would be less about offering gender-specific products and more about moving towards a more diverse and inclusive investment industry. Half of the asset management firms surveyed in the study said that only 10% or less of their fund managers or investment analysts were women. 73% of asset managers believe that the industry would be able to attract more women to invest if it had more female fund managers.

Investing in values

The study also looked at the motivations of women to invest.

The main motivation is the impact their investments could have. 53% of women said they would invest or invest more if the impact of their investment matched their personal values or if the investment funds had a clear objective or positive purpose.

In the hit parade of these values, innovation and new technologies come first, followed by climate change and social investment.

66% of women who currently invest try to invest in companies they like and that support their personal values.

This desire to align investments with values appears to be stronger among those with children: three-quarters of parents--both women and men--who are currently investing say they prefer to invest in companies that support their personal values, compared to 59% of adults without children.

Originally published in French by and translated for Delano