More women are buying shares to achieve financial security and independence and create passive income for themselves, according to the ASX.
In an article published on asx.com.au, Australia's share market operator said there was a growing trend in women investing in shares outside of their superannuation.
The latest ASX Australian Investor Study estimates that 4.3 million women owned shares in 2023, up by 600,000 since 2020.
Future Generation CEO Caroline Gurney said:
We are seeing more and more women start to invest, particularly at a younger age.
My hope is this change inspires other women to invest and the gender gap between male and female investors in Australia closes faster.
The ASX study showed that 42% of women own shares compared to 58% of men.
Women have smaller shares portfolios than men, with almost a third reporting their portfolio's value being less than $50,000.
The average female investor is 47 years old with a median shares portfolio worth $96,000.
The study found that women tend to be more risk-averse than men and prefer stable and reliable returns. As their portfolios are smaller, their investments are also less diversified.
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Women seek financial independence and security
Gurney said women are seeking financial independence and security at a time when older women are the fastest-growing homeless demographic in Australia.
She said:
Some may have been divorced, not had superannuation or relied on their partner to make all the financial decisions.
Even a small amount of investment early in a woman's life can improve one's financial independence and add to their financial security later in life.
Antipodes Partners portfolio manager Vihari Ross said more women are graduating from university, creating successful careers, and investing in ASX shares earlier in life.
Ross said:
Building wealth early in your life, even if only a small amount, could make a huge difference for women over their lifetime.
Women who begin investing in their twenties could have more options in their thirties.
Creating passive income from an investment, and using that income to supplement your regular income, can change your life.
Education the key to ASX shares investing success
WaveStone Capital director and portfolio manager Catherine Allfrey said women needed to self-educate on shares and other investments.
Nobody teaches you financial literacy at school, or how investing in shares, bonds or property over the long term could contribute to wealth creation.
It's really important for women to self-educate themselves about investing.
There's lots of good, free information out there from reputable sources to help women get started in investing.
Young people investing to save a home deposit
Gurney added that a lack of housing affordability and rising home values are prompting more young people — both men and women — to invest in shares to save a deposit faster.
She said:
Young people realise they need to start investing earlier in their life than previous generations if they want to save for a house deposit and have a place for their family.
The ASX investor study found 16% of respondents had bought shares to achieve this goal.
