Men statistically tend to engage more in stocks investment compared to women.
A new survey by YouGov, commissioned by the German Press Agency, has shed light on the ongoing gender disparity in stock and fund investing in Germany. The survey found that 43% of male respondents invest their money in these sectors, compared to only 24% of female respondents.
The gender gap in investing in Germany is driven by a combination of factors, including cultural and behavioral differences, risk preferences, economic participation, and a lack of tailored investment strategies. Germany's more conservative savings culture contributes to lower investment rates in general, and women tend to invest even less than men across all investment products, amplifying the existing global gender differences.
Data on specific sectors like defense investing shows that men disproportionately favor direct equity stakes, embracing short-term volatility and leverage, while women lean towards structured products offering downside protection, such as autocallable notes. This suggests that women may prefer less risky investment vehicles, contributing to fewer women holding direct stock ownership.
Broader gender gaps in economic participation, opportunity, and financial literacy may also play a role. The Global Gender Gap Report signals continuing disparities in economic participation globally, which indirectly affect investment behavior and confidence among women.
The difference in investment preferences signals the need for more tailored investment products and education to bridge the gap and encourage more women to invest directly in stocks and funds. Gerrit Fey, the institute's chief economist, stated that the difference in investment levels between men and women has remained stable over the years.
Among those who do not invest, half say they don't have enough money left over, with 48% of women citing this reason. "I don't know enough" is given as the reason for not investing by 36% of women and a third of all respondents. Among private investors surveyed, a larger proportion of men make investments of over 250 or 500 euros, while the investment volume for female investors is mostly below 250 euros.
Interestingly, tendentially, more men than women invest abroad. Only a third of all respondents estimate that they have good or very good knowledge about stocks or funds, with 42% of female participants rating their knowledge as poor. The survey is representative, with 2,043 people surveyed online on behalf of the German Press Agency from June 25 to 27, 2022.
The survey also highlighted the high participation of younger generations in investing, with 42% and 44% of respondents between the ages of 18 and 24 and 25 to 34, respectively, investing in stocks or funds. The proportion of respondents over 54 was lower at 27%.
The survey also touched on the environmental impact of German residential buildings, which are responsible for around 14% of all CO2 emissions. A study suggests that a climate-friendly renovation of these buildings would cost around 1.4 trillion euros.
The survey was conducted by the German Stock Institute, which commissions an annual representative survey on investment. The results of this survey provide valuable insights into the current state of investing in Germany and highlight areas where improvements can be made to encourage greater participation and bridge the gender gap.
What factors contribute to the gender gap in personal-finance investment in Germany? The gap is driven by cultural and behavioral differences, risk preferences, economic participation, a lack of tailored investment strategies, and possibly financial literacy.
For instance, men tend to favor direct equity stakes, while women lean towards structured products offering downside protection, which might indicate a preference for less risky investment vehicles among women, potentially leading to fewer women holding direct stock ownership.
