Confident investing for women: embracing risk
Women have historically been risk-averse when it comes to investing. But financial independence is growing among women creating the need for tailored advice that reflects the complexity of modern life
Women are typically more cautious in their investment approach in the UK, which has often led to lower savings and insufficient retirement funds compared to men. Several Office for National Statistics (ONS) Wealth and Assets Surveys have consistently shown that female investors are less likely to hold stocks and shares individual savings accounts (ISAs) compared to men, favouring cash ISAs instead1. Additionally, while automatic enrolment has helped equalise pension participation rates, women still tend to contribute less and are more likely to opt for lower risk pension funds, according to the Department for Work & Pensions2
While traditionally viewed as something to be avoided, the reality is that risk also represents opportunity—the potential for growth, progress and long-term success. So how can women take the right level of risk for their portfolios to ensure they reach their financial goals?
Balancing prudence with progress
Modern investment strategies recognise that risk tolerance is deeply personal. It must be aligned not only with financial goals but also with life circumstances, responsibilities and values. In my experience, women often consider the broader impact of their financial decisions on family, career, and community, making their approach to risk both thoughtful and strategic. There is, of course, nothing wrong with this approach, but it’s important to seek professional guidance to ensure that caution is not a barrier to investment opportunity.
Professional advisers can help strike a balance - taking on the level of risk necessary to achieve long-term objectives, without stepping too far outside of your comfort zone.
Taking the equity plunge
Investing in equities can be a daunting experience and as with all investments as there is the risk of losing some or all your money or seeing the value of it plunge during times of extreme volatility. However, being invested in equities as part of a diversified portfolio might be worth considering because, over the long term, shares have historically delivered higher returns than cash savings or bonds, helping investors grow their wealth and outpace inflation. While stock markets can be volatile in the short term, staying invested over the long term can allow you to benefit from compounding returns and the potential for overall growth, especially when investing in a diversified portfolio.
Compounding is an important element to investing and a diversified portfolio can ensure you’re spreading the risk between different asset classes (not just equities but bonds and cash too), sectors (technology, consumer goods etc.) and geographies (UK, US and emerging markets). Different funds carry varying levels of risk depending on the geographical region and industry sector in which they invest. You should make yourself aware of these specific risks prior to investing.
When it comes to investing, our role is to lay out the options clearly. This includes mapping out various scenarios so that a client can get to grips with the worst and best-case scenario. While past performance isn’t an indicator for future returns, we usually find that mapping out these outcomes brings a degree of comfort and aids perception of the risks involved.
Be open to considering risks
The most important consideration is that women take risks they are comfortable with, while also evaluating the level of risk necessary to realistically achieve their financial goals. It’s important to find investment professionals who avoid pushing people too far outside their comfort zones, but who can encourage thoughtful reflection on long-term objectives.
By working with a professional, women can outsource complex decisions and explore a wide range of options—often discovering they are more comfortable with risk than they realise. After all, calculated risk-taking is a natural part of life, frequently undertaken without conscious awareness.
Demand empathetic, personalised service
As women’s financial lives become more complex, so too does the need for advice that reflects their unique experiences. From career transitions to family planning, women face a range of financial decisions that require nuanced, empathetic guidance. If you know you’re going to go through major life changes—such as welcoming your first child or going through a divorce—it’s important to find professionals who can provide tailored advice for these situations.
At Evelyn Partners, we constantly talk about the power of good advice, but we also emphasise the importance of having the right advisers. Many female clients have enjoyed speaking to me about investments, as well as to our financial planners about future plans and assessing their ideas. We want to make women feel listened to and understand that there are no stupid questions. In fact, many of their concerns will be similar to those of their male counterparts, but other aspects of life are extremely different for women. This is something that must be appreciated and is certainly something I believe that is driving demand for more female advisers.
There is growing recognition that financial advice must be inclusive and responsive. This includes increasing the representation of female advisers—professionals who understand the lived realities of their clients and can foster a sense of trust and relatability.
Find out if you're taking on enough risk
The good news is that the landscape of women and investing is evolving with more women taking on greater risk than before. The ONS has recently reported a gradual increase in the number of women holding stocks and shares ISAs, which is a shift of their traditional preference to cash ISAs, but there is still some way to go before women close the gap3.
If you want to discuss your own approach to risk, please speak to your usual Evelyn Partners contact.
Sources
- ONS.gov.uk, Pensions, savings and investments, March 2019
- Gov.uk, Gender pensions gap in private pensions: 2020 to 2022, July 2025
- ONS.gov.uk, Financial Wealth: wealth in Great Britain, January 2025
