Women are outpacing their male counterparts in investment returns, a trend highlighted as International Women’s Day approaches. While men still dominate the financial sector – representing 87 per cent of fund managers, according to Citywire – data suggests a different story when it comes to actual investment performance.
Barclays research, tracking 2,800 investment customers, revealed that female portfolios achieved annual gains 1.8 percentage points higher than those managed by men. This outperformance is coupled with greater participation in Individual Savings Accounts (ISAs) among women, as identified by AJ Bell. Despite historically facing barriers to financial independence – women in the UK were not permitted to open bank accounts without a male co-signer until 1975 – they are demonstrating a knack for successful investing.
A key difference lies in trading frequency. AJ Bell data shows men, on average, execute 12 trades per year, while women make 25 per cent fewer. This reduced activity translates to lower fees and a decreased risk of reacting to short-term market fluctuations. Danni Hewson, head of financial analysis at AJ Bell, explained, “This suggests less fiddling with portfolios after making their investment decisions at the outset, resulting in the side benefit of paying less in fees and reducing the risk of falling foul of market volatility.”
Women also exhibit a tendency to hold investments for longer periods, resisting impulsive reactions to market downturns. This patience is further reflected in their cash ISA holdings. According to HMRC figures, women hold more cash in ISAs than men, even considering the gender pay gap and the disproportionate impact of career breaks on women’s earnings, as noted by Maike Currie, VP Personal Finance at PensionBee. Currie stated, “Women tend to approach saving with diligence, long-term goals and consistency.”
Diversification is another hallmark of women’s investment strategies. A study by Warwick University found women more frequently invest in funds, which offer built-in diversification across multiple businesses, sectors, and regions. This contrasts with men’s greater preference for individual shares, a riskier approach tied to the performance of a single company. Spreading investments across various asset classes – funds, bonds, and shares – and geographic locations helps mitigate risk and smooth returns.
Despite these positive habits, a significant gender investment gap persists. Men hold nearly 500,000 more stocks and shares ISAs than women, according to AJ Bell, with many women opting for the perceived safety of cash. However, Currie cautions that excessive caution can be detrimental, as cash savings risk losing purchasing power to inflation and missing out on potential market growth.
The gap is beginning to narrow. Boring Money research indicates a 10 per cent increase in the number of women investing in the past year, and the total wealth invested by women has closed the gap with men by 15 per cent. PensionBee has also observed encouraging trends, with women contributing more to their pensions than men in January 2026 – a rare occurrence. Holly Mackay, founder and CEO of Boring Money, acknowledged, “There are genuine green shoots of hope,” but emphasized that a £574 billion gender investment gap remains.
