More than two fifths of female investors started investing during the pandemic, a recent survey from social investing app eToro revealed.
According to the survey, which was conducted by the Israeli company, 42 per cent of current female investors began investing in 2020 or 2021 and half of them said they plan to extend their investments for six years or beyond.
U.S. analyst at eToro, Callie Cox, believes the pandemic allowed more time for women to learn what investing means.
“We were all talking about it … so this helped women feel more comfortable to step in and invest,” she told CNBC News.
“[Women] were in a corner and kind of had to take control of their finances,” she commented, referring to the disproportionate job losses suffered by women due to caregiving duties that prevented them from returning to paid employment.
“The resulting financial hit to their household income may have translated into a bigger need to focus more on money matters,” Cox added.
Another study conducted last year by Boston-based financial services company, Fidelity Investments, revealed that half of all the women they surveyed reportedly become more interested in investing during the pandemic.
According to Fidelity’s study, more than two thirds of women are now investing outside of their retirement savings – an increase from 44 percent in 2018.
One financial planner, Haley Tolitsky, told CNBC News that knowing the reason for investing is crucial.
“You want to think about why you are investing,” Tolitsky said. “Think about what your goals are and why you’re putting your money where you are.
“The shorter your time frame, the more conservative you want to be,” Tolitsky said. “You probably don’t want to be 100% in equities if you’re investing for less than 10 years.”
“The S&P 500 index’s annualized return is about 8 to 9 per cent, but that’s over a long time horizon, not a few years. In the meantime, ask yourself if you can sleep at night knowing your money is fluctuating. If the answer is no, you probably need to cut back on risky assets.”