How Are Women Planning to Invest in 2023?

For the past several decades, the investing landscape has been dominated by men. However, new data from a Magnifi survey revealed that young female investors are eager and ready to put their money to work in 2023.

 show that of women planning to invest, the majority (55%) want to invest more of their money in 2023 compared to last year, led by Millennials (64%), specifically Asian (82%), Black (80%), and Hispanic or Latino (69%) women (1).

The survey also indicated that this group of female investors want to take control of their finances and are eager to succeed long-term. 46% want to invest independently and believe it’s wise to start investing after you get your first job (48%) or once you have substantial savings (28%).

We also found that negative news is not holding them back, as 

72% of women stated they would continue to save for their financial future

 despite negative news coverage ranging from big tech corporate layoffs to the uncertainties of the economy and even the war in Ukraine (2).

What’s Driving the Increase in Female Investors Compared to Last Year?

According to the same survey, one factor is the ability to receive one-to-one, personalized investing guidance.

77% of women believe investing advice that is tailored to their specific needs and goals will help lead them to better financial outcomes. In fact, investment guidance from artificial intelligence (AI) is particularly intriguing as nearly all of Gen Z and Millennial women (91%) would make an investment decision based on advice from conversational AI like 

Most women generally have an optimistic attitude toward AI’s capabilities like those used in some popular investing apps. More than half of American women are either excited for AI to make their lives easier (19%) or believe it has the potential to improve their lives (33%). Gen Z and Millennial women are most looking forward to AI’s ability to make smart financial decisions like, analyze historical data and trends (54%), help understand complex financial terms (42%), and 

The good news is as more and more women seek financial independence through investing and AI assistants found on investing apps like Magnifi which offer investors the ability to craft hyper-personalized, diversified portfolios, making individual investing even more available and accessible for everyone.

Vasu Chetluru, Head of Conversational AI, offers three tips to get started:

 Responsible investing starts with a goal. What am I investing for? Am I investing to save for a vacation or is it for a long-term retirement plan? Interestingly, studies have shown that women and men often invest differently. Men often start with considering the risk behind the investment while women start by considering the goal behind the investment. Once you have established your goal then you can begin to consider the risk.

 If you’re a first-time investor, start simple, and don’t be afraid to ask questions. Consider picking a few diversified investments instead of single stocks. Keep in mind, though, diversification does not guarantee a profit nor protect against a loss in a declining market. Diversification is however, a method that can help you manage investment risk.

 “I remember when I first started investing quite vividly. The tools I had at my disposal were pretty much CNBC and the news, and that’s just not enough information an investor needs to make a strategic, informed decision,” said Chetluru. Fortunately, today, investors can leverage today’s technology to their advantage. With Magnifi Personal, you can ask the AI investing assistant what investments are performing well as well as plan for a goal, and you will receive guidance on what you could invest in and why that might matter to you, personally.

This opt-in survey was commissioned by Magnifi the week of January 13, 2023, among 1,000 American adults aged 18 and older, and conducted online by Dynata. Respondents of the survey were selected from those who volunteered to participate in online surveys. One thousand complete surveys were collected using the sample framework based on U.S. Census data for age, ethnicity, gender, region, and income.

This opt-in survey was commissioned by Magnifi the week of October 17, 2022, among 1,000 American adults aged 18 and older, and conducted online by Dynata. Respondents of the survey were selected from those who volunteered to participate in online surveys. One thousand complete surveys were collected using the sample framework based on U.S. Census data for age, ethnicity, gender, region, and income.

"The State of Personal Investing Q1 2023," Magnifi, https://magnifi.com/learn/state-of-personal-investing-q1-2023

"The State of Personal Investing Q1 2023"

"Using ChatGPT For Investing," June 8, 2023, magnifi.com, https://magnifi.com/learn/chat-gpt-for-investing

Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

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