Women making deeper strides into stocks, finds Fidelity

Women making deeper strides into stocks, finds Fidelity
Latest research reveals seven in 10 women have investments the US equity market, but financial stress still keeps a strong majority up at night.
OCT 07, 2024

While seven in 10 women are taking control of their future with investments in the stock market, a strong majority still report feelings of financial stress and lack of confidence, according to the latest research from Fidelity Investments.

In its 2024 Women & Investing Study, Fidelity found 71 percent of women now hold investments, continuing their years-long path of progress with an 18 percent rise compared to 2023. And while younger women continue to report strong tendencies toward investment, Gen X and Baby Boomers showed the strongest increases of 18 percent and 23 percent, respectively.

“It’s encouraging to see the number of women taking control of their finances swell over the past three years,” Sangeeta Moorjani, head of tax-exempt markets and lifetime engagement for Fidelity Investments said in a statement.

The study notes that women are motivated to invest primarily to build generational wealth, ensure financial security for their children, and meet major life goals like retirement or significant purchases. Among millennial women, the desire to secure generational wealth is particularly strong, while older generations tend to focus on long-term financial goals. Overall, 71 percent of women surveyed view investing as a tool to build wealth across generations.

While the advances in participation were evident, the research also highlighted continued financial stress among women. Over half of the women it surveyed report ed financial concerns keep them up at least one night per month, with numbers rising to 72 percent for Generation Z women and 68 percent for millennials.

Fidelity’s findings show that younger women are spearheading the movement toward earlier investment. Seventy-seven percent of Generation Z women now own investments in the stock market, up from 71 percent in 2023. Social media remains a popular source for investment ideas among Gen Z, but the research suggests these women still rely on family, friends, and independent research for financial guidance. Only 11 percent of them see social media as a trustworthy source for investment advice, while 89 percent said they're currently or planning to work with financial professionals.

Despite the progress, the research suggests there may be a sense of financial impostor syndrome among women. Fidelity’s study showed women were nearly twice as likely as men to describe their financial knowledge as “non-existent,” and were also more likely to admit they're intimidated by managing both investments and day-to-day finances.

“We know there is still work to be done – the financial confidence gap continues to persist, and women continue to report higher levels of financial stress than men – but we’ve made considerable strides,” said Moorjani.

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