Women Investors Deliver Higher Returns With Less Risk — A Lesson For Volatile Markets

Women are bringing revolutionary change to the world of finance as they increasingly believe that the stock market is a good place to invest. A 2025 Wells Fargo Institute Investment report mentioned that women have discipline, a willingness to learn, and are more risk-averse when it comes to investing.

Women continue to be aggressive savers, and their investment philosophy is founded on protecting their money before chasing returns. A 2025 Women & Money report by Fidelity revealed that 42 per cent women reduced their non-essential spending last year amid economic uncertainty, while a similar share of women were working to save more and clearing debt.

Multiple factors could be influencing this conservative investing strategy. The report revealed that 94 per cent of women think they will be in charge of family finances at some point. Even the fact that women on average earn $0.83 on the dollar compared with men could also fuel the instinct to accumulate and safeguard assets more carefully. Interestingly, women often take a leading role in educating the next generation about personal finance.

With easy access to investing tools and resources as well as fiduciary financial advisors, 70% of women now believe investing is a way to build generational wealth, according to the report.

Staying Calm During Market Downturns

A Fidelity Investments report revealed that women are more likely to stick with a buy-and-hold investing strategy relative to male investors during stock market volatility.

When it comes to investing, women are generally thought of as more risk-averse than men, Women's World Banking CEO Mary Ellen Iskenderian told CNBC.

'Ideas like risk-averse have become very gendered... and because a woman might not have the same risk profile, that doesn't make her adverse, it makes her smart,' Iskenderian told the media outlet.

'One of the biggest misconceptions about women investors is that they are emotional, and that is just not the case,' said certified financial planner Alex Roca, adding that women invest in an 'analytical way' and avoid short-term gratification.

Women Secure Similar Returns With Less Risk

Multiple studies show that women investors tend to beat men by 40 basis points in returns as they prefer stable investments, keeping in mind long-term financial security. They are more disciplined and likely to consult a financial advisor for investment guidance and wealth creation.

Although risk-averse, it has not impacted the ability of women to achieve higher risk-adjusted returns. Wells Fargo noted that women-led joint account returns were higher than men for seven years when adjusted for investment risks. A Harvard study also highlighted that women take more risk than men when it comes to both social entrepreneurship and impact investing.

With women expected to control $34 trillion in financial assets by 2030, Iskenderian recommends that they use their growing wealth as leverage to find the right financial advisor for long-term investment guidance.

Disclaimer: Our digital media content is for informational purposes only and does not constitute investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks, and past performance does not guarantee future returns.