For years, the financial services industry has attributed the underrepresentation of women in investing to a so-called “confidence problem.” However, recent research indicates that this perspective is not only misguided but potentially harmful to female investors.
An examination of over 80 reports and campaigns by financial institutions in the UK from 2020 to 2025 revealed that 57% of these narratives framed women’s confidence in a negative light. Commonly used phrases suggested that women are “too nervous to invest,” “unsure where to start,” or “too scared of losing money.” Conversely, only 21% of the messages highlighted the strengths that women bring to investing, such as patience and a long-term focus.
The choice of language is critical. In a survey conducted by eToro along with Appinio, involving 2,000 women in the UK, it was found that nearly one in five participants felt discouraged from investing when told they lacked confidence. Additionally, 24% expressed feelings of being patronized, while 17% reported a loss of motivation due to such messaging.
This negative framing can have damaging implications, contributing to collective self-doubt rather than empowering potential investors. The ongoing portrayal of women in a negative context perpetuates stereotypes that can deter them from engaging in investment activities.
Contrary to popular belief, numerous studies demonstrate that women tend to outperform men in investment returns. Research from Warwick Business School in 2018 indicated that women achieve returns almost 2% higher annually compared to their male counterparts. Their cautious approach—characterized by thorough questioning, careful consideration, and risk aversion—has been shown to yield better outcomes.
The essence of effective investing doesn’t lie in women mimicking male strategies, but rather in them leveraging their natural inclinations toward careful decision-making. Women typically trade less frequently and adopt a more long-term perspective, both of which contribute positively to their investment performance. What may be interpreted as hesitance is oftentimes actually sound judgment.
The impact of positive messaging on women’s investment motivation is considerable. When participants were exposed to the statement “Women investors outperform men by 4%,” interest in investing soared: 26% of current non-investors expressed a desire to learn more, and overall motivation increased by 44%.
However, challenges persist beyond messaging; representation in the financial sector remains skewed. A significant portion of women, 41%, indicated that they don’t connect with individuals discussing investing publicly. More than half noted that men dominate discourse in the realm of finance, while 54% stated that finance professionals largely lead these conversations.
A study revealed that men represent 75% of the airtime in financial media, while women are often depicted in lesser roles. This imbalance exacerbates feelings of disconnection and may contribute to the gender investment gap.
Experts argue for a shift in the industry’s approach, emphasizing that framing women as lacking confidence undermines their abilities as investors. Negative gender stereotypes are not only damaging but also play a role in widening the existing investment gap.
Currently, the gender investment gap in the UK amounts to a staggering £678 billion, with approximately 3.3 million more men investing than women—a disparity that has increased by 200,000 over the past year.
In an effort to address this gap, the financial sector has enlisted initiatives such as Loud Investing, championed by prominent figures like Jill Scott, a former England footballer. Scott draws analogies between the discipline required in sports and the patience needed in investing, noting that success demands a long-term commitment rather than instant results.
The Loud Investing campaign seeks to reshape the conversation surrounding female investors by emphasizing shared knowledge and open discussions about finances. Instead of perpetuating outdated stereotypes, it strives to inspire more women to participate in investing, promoting a more inclusive and equitable financial landscape.
Addressing the confidence issue among women in investing requires a concerted effort to change narratives, increase representation, and celebrate the unique strengths that female investors possess, ultimately aiming to bridge the gender investment gap more effectively.