Women In Finance

As many young women prepare to start their college journeys in the fall, choosing a major can often be a daunting task. While historically seen as a male-dominated industry, finance can be a great option for those women who enjoy working through challenges and watching their innovative ideas make an impact. Whether choosing to work as a retail investment advisor, helping to make critical differences in their clients’ lifestyles and legacies, or in institutional asset management, there are a variety of career options in the fast-paced industry of finance that provide women with a rewarding career and an opportunity to do meaningful work. In addition, the industry is constantly evolving to meet the needs of a changing world, creating an exciting environment from which to learn, while also providing job security.

Women also have a lot to offer to the profession, itself.

By possessing unique qualities that differentiate them from their male counterparts, they are able to provide diversified views and skillsets to the investment industry. It is often said that women take fewer risks than men and numerous studies have shown this to also be true when it comes to investing. Overall, women have been found to be more likely to stay the course—practicing patience and keeping a more long-term and goal-oriented view with their investments. Despite their conservatism, some studies found that women outperformed men over longer time horizons.

A study from the University of California Berkeley revealed that single women outperformed their male counterparts by 2.3% over a 7-year period.

They pointed out the benefit of lower transaction costs, as women took a more disciplined approach by trading their positions 30% less often than men. Another study from Fidelity Investments in 2017 discovered that women not only saved more than men, their investments earned more annually, by 0.4 percent. While this appears to be a minor difference, it can have a significant impact when compounded over a long-time horizon. Women have also been found to perform more in-depth research on their investments and view investing more holistically, instead of focusing solely on performance.

Perhaps, most importantly, a career in finance provides the chance to make a meaningful impact through empowering other women to achieve financial independence. According to a recent Mckinsey study, only a quarter of affluent women are comfortable making investment and savingsrelated decisions on their own—15 percentage points lower than males.

Yet, achieving financial independence is crucial for women, as they have longer average life expectancies than men, and those women living alone tend to show higher rates of poverty than men of similar age.

Women were also found to place a high value on establishing a personal connection when seeking an investment professional—aligning well with the strengths most women have for being empathetic and good listeners.

By entering a career in finance, women have a unique opportunity to gain an enriching career, while also helping to enhance the industry by providing a diverse skillset and having the potential to empower others.