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female investors tend to have a much more complex investment preference.

Female Investors: Invest with intent

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We know that women tend to save more and invest less than men do, and we are often told that lack of knowledge and confidence is one of the key reasons holding women back. But Roxana Mohammadian-Molina, Chief Strategy Officer at property investing platform Blend Network that has a large number of female investors argues that women look for purpose when investing, thus spending much more time researching investment products. 

According to a recent survey by YouGov, over half of women have never owned any investment products and only one in five currently hold an investment. However, the research shows that despite the disparity, women are in principle open to investing with close to one in two agreeing that investing money is a good idea. 

So, if women are open to the idea of investing, what is holding them back and why are women not investing as much as men do? According to the same research, lack of knowledge and confidence does hold women them back. Indeed, while 45% of men say that they would feel confident investing some of their money the figure among women is just 28%. Yet I believe the reality is much more complex than what the figures seem to indicate.

I believe that women often have much more ‘complex’ investment preferences in the sense that financial returns alone are not always the key metric to measure the success of an investment. Women often tend to adopt a much broader perspective when it comes to evaluating returns on an investment and include social returns as a key metric to their assessment.

From my experience speaking with women about investing, discussing what prompts them to select one investment product over others and what drives their decision to select an investment, women tend to favour investing in purpose-led projects and investment products.

In other words, for women it is often all about ‘doing well, by doing good’. According to a report by Pershing, women often prefer to structure their investments and savings into pools for specific purposes and measure success by how well they can fulfil these purposes.

Peer-to-peer (P2P) Investing

As Chief Strategy Officer of a peer-to-peer (P2P) property investing platform that counts a large number of women among its investors, I have witnessed women’s appeal for purpose-led investments first-hand.

At Blend Network, we work at the intersection of finance, technology and social responsibility, connecting experienced property developers who are building affordable homes – many of whom are women – with people who want to invest. At the heart of everything we do is supporting those who find themselves disconnected from traditional funding channels, women in particular. Our investors come from all walks of life, some are high net worth investors who invests tens of thousands of Pounds, some are private investors who invest £1,000.

Yet, they all share a passion for making a difference by co-investing in projects that help developers to build more affordable homes. It also doesn’t hurt that the investments offer between 8-12% return p.a. I strongly believe that it’s all about doing well while doing good. So do our investors.  

To learn more about how to invest in P2P property lending with only £10,000, register here and tune into our upcoming lunchtime webinar: https://bit.ly/3k3MhpT 

Your capital is at risk if you lend to businesses. P2P lending is not covered by the Financial Services Compensation Scheme. Investments are illiquid (the inability to sell assets quickly or without substantial loss in value). Past performance is not a reliable indicator of future results.

Blend Loan Network Limited is an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (FRN. 574048)

Roxana Mohammadian-Molina is an advisor to tech companies across the GCC, Chief Strategy Officer and Board Member at London-based FinTech company Blend Network. A former banker at Morgan Stanley in London, she now sits on the Board of Women in Finance 2020 and focuses on investing in, growing, and advising tech companies.

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