01 Oct Empowering women to invest positively
Today is the start of the 11th annual Good Money Week, a campaign to raise awareness of sustainable, responsible and ethical finance – banking, pensions savings and investments – to help people make good money choices.
This year’s focus is on empowering women to feel more confident when it comes to investing, because women are statistically less likely to invest but more likely to make ethical choices when they do….so when women invest, the world wins! Ethex have kindly sponsored another Ethical Hour campaign this year to help us raise awareness of impact investing during Good Money Week, and this year they’re here to help us empower more women to make positive investments…
If you think about the word ‘investors’, what do you picture?
Chances are it will be male, right?
The word conjures up images of Wall Street and London Stock Exchange, lots of suits, and a male-dominated environment. The image of the current investment industry can be a bit daunting for many women.
The statistics prove that women in the UK are less likely to make investments than men. Just 21% of women currently hold an investment, as opposed to 35% of men and 52% of women in the UK say they have never held an investment.
There is a clear divide, and while average women’s income and wealth have gradually increased over the years, there seems to be a reluctance to start investing it.
The confidence factor
While a number of factors will play a part, one of the main reasons that women aren’t actively investing as much as men is down to a lack of confidence, as 45% of men feel confident in making investment decisions while just 28% of women do.
There is also a big divide in perceived knowledge, where 26% of men in the UK feel they have a good level of knowledge of stocks and shares compared to just 13% of women.
During this year’s Good Money Week (29th Sept – 5th Oct), Ethex, the leading online impact investing platform, has set out three recommendations for the financial services industry to help encourage more women to invest.
An ethical choice
According to Ethex’s Positive Investor report, 19.5 million people in the UK (51% of the adult population) are investing ethically (or positively) or are interested in doing so; one-third (33%) of these are women.
However, of those who do not feel they know enough about positive investing but are motivated by ways to improve society, 53% are women, so it’s clear that more can be done to encourage these potential female investors.
Knowledge is power
It’s obvious to us that building confidence in ethical investing is key to empowering more women to invest. At Ethex, we want to make it easier for women to start investing their money positively and help them feel more confident in taking control of their money and what it funds.
Currently, 39% of Ethex’s customers are women and we are looking at solutions to help encourage more women to invest.
A wide range of ethical opportunities
On the Ethex website, you can browse all the available ethical investment opportunities and see which ones appeal to you and your values.
From community energy schemes and renewable energy generation to micro finance, social housing initiatives and eco-farming, Ethex lists a range of businesses that are looking for investor support to achieve their goals.
There are a range of savings and investment products too – from savings to shares and bonds and even new Innovative Finance ISA products, meaning you can also choose to invest for potential tax-free returns.
Cut the technical jargon
At Ethex we believe in speaking in clear, straightforward language to our investors, we know they value trust and transparency and want to be provided with opportunities to invest in projects that match their values and motivations.
The conditions and risks associated with each are clearly stated and we provide all the information you need to decide if it’s a project you want to support.
Many of the investments we offer have low initial investment amounts, from as little as £50, so if you’re dipping your toe in the water, so to speak, these could be an ideal confidence-builder for investing.
Join the Positive Investment movement
Through our network of over 13,000 people, we have raised over £65 million for businesses that do good, and as an investor, you can have confidence that your money is working hard to help these businesses. Take a look at the impact that these investments have achieved here.
Lisa Ashford, CEO, Ethex says: “It is incorrect to think that men are more engaged with their money simply because there are more male investors. The industry needs to understand the motivations of the investor, not simply how a product is communicated or what it returns.
“Good Money Week is a great initiative for looking at investing not simply as a product but a means of supporting an issue you value. If we can encourage more people to get involved, then that is a great outcome.”
The potential for growth
There is a general misconception that ethical investments might not generate a financial return, but that isn’t the case. Look at the investments on offer and you will see potential returns of up to 7% for some products – add to this the fact you’re generating positive impact, and these could start to look like a credible option for your investments.
With any equity investment, there is always a degree of risk. The returns are not guaranteed and there is a chance you won’t get back what you have put in. Ethex are upfront and transparent about the risks, as well as the potential benefits of each investment.
Try it yourself
Of course, every person is different, and you should always look carefully at the pros and cons of any investment you make. But if you’re interested in using your money to help make a positive impact, as well as earning you a potential financial reward, why wait?
With Ethex you can invest with confidence that your money is having a positive impact, so browse our platform today and start taking control of your money.
Find out more about how Ethex can help you invest in businesses you believe in. Sign up for updates here.