19 January, 2023

We were thrilled to collaborate with Female Invest back in December 2022, along with Aunt Joy Gallery, with a talk and networking event on 'Paintings and The Patriarchy'. It was during this event that we confirmed just how amazing this team of young women is, and how absolutely key their mission of closing the financial gender gap is. To celebrate this, our Chief Marketing Officer, Aurelia, caught up with Female Invest co-founder, Anna-Sophie Hartvingsen, to chat about why women lack confidence when it comes to investing, what can be done to support them, and more.

Please tell us a bit more about your overall mission at Female Invest? How was it born?

Camilla, Emma and I met at university, and we shared an interest in investing, but all the resources were marketed to men and full of jargon. We decided to start a club, where we’d drink wine and discuss stocks. Our first meet-up ended up being so popular amongst our university peers that we had to find a bigger venue. That’s when Female Invest was born.

Fast-forward three years and we’ve helped over 150,000 women in 95 countries get to grips with their finances. We still have a lot to do, and now we have a team of 30 to support our mission. There are 195 countries in the world, and not a single one has achieved financial gender equality. That’s what fuels our mission to empower as many women as possible. When you give women the ability to make the most of their money, the world becomes a stronger and better version of itself.

When speaking to your members, what are some common themes or pain points they mention about getting started in investing?

There are two main areas that our members commonly ask about. Firstly, jargon is rife when it comes to investing: ETFs, ISAs, SIPPs, KIIDs, FTSE, NASDAQ - it’s enough to put many people off. We break down these terms and build up our members’ knowledge, and therefore, confidence in discussing investing abbreviations. Last year, we held an event about money habits & regrets, and one of the most popular money habits shared was to ask as many “silly” questions as possible. The great thing about the Female Invest community is that no question is too simple and our members help each other, therefore empowering one another. The second part is actually making that first investment!

For many, it feels like a big jump into unknown waters, but it’s more like a water drop that starts a bigger ripple. We strongly believe that investing is for the long run, so placing the first trade is the start of a journey rather than the entire event. Getting started is often the hardest part because you’ve built up a level of knowledge, gained confidence and it seems like a big moment. Some of our members have placed their first deal together so they can start their investing journeys at the same time; that’s the kind of supportive community we’re proud to have built.

According to BankRate, despite the fact that women get better returns than men do, they still do not feel confident investing. Fidelity’s 2021 survey found that only 33% of women felt confident in their own ability to make investment decisions, and only 42% felt confident in their ability to save for the long term, including retirement.

Getting started in investing can be a challenge for anyone, regardless of gender, yet it is clear that there is a wide gender gap when it comes to this. Why do you think women are more reluctant to get into investments and what can be done to improve this?

There are so many reasons why women aren’t confident with investing and many of them stem back to when we were children: lack of education about money at school, parents teaching girls about saving and boys about growing their money, girls and boys not being pushed towards the same career paths. But it’s also about resources after school - for example, in magazines, there are usually several adverts for fund managers and trading platforms in men’s magazines and rarely any in magazines traditionally for women. This has to change.

That’s why combining education and community is so important, as change is rarely made by one person alone. Something exciting we have seen is an increase in the number of women’s groups in the workplace, where women and allies are able to discuss the issues surrounding gender biases and have a voice from within a firm. These groups get in touch with us about workshops and providing their staff with copies of our book, 'Girls Just Wanna Have Funds', which is what we love to see - companies supporting their staff with financial literacy, and not just lip service.

There are plenty of financial trading platforms out there to start investing in stocks and bonds. However, we consistently hear about the importance of portfolio diversification through investments in alternative assets, especially given the current economic climate. How important is this, in your opinion?

Diversification is crucial to investing and something that’s easy to get wrong. Sometimes we might think we’re investing in multiple companies by owning lots and lots of different funds, but when you take a look at the stocks you actually hold, you may find that combined they have a massive stake in a handful of the same stocks. On the other hand, with tech and cryptocurrencies disrupting traditional shares and funds, it can be difficult to not get swept up in the hype. When those investments are doing well, it can feel exciting to add to the existing investment, but when the market dips, it can dent your confidence. We’ve started educating our members not only about shares and funds, but also art, gold, cryptocurrencies and other assets. That way, they have the knowledge behind the investments and can make their own plans to diversify their portfolios.

What do you think is the most important thing to be aware of when investing in alternative assets, whether they may be wine, art, real estate, etc.?

You need to do your research about the market and how long the recommended investing period is, plus you should find a platform you’re comfortable with, as you’ll be trusting them to make the process simple for you. Checking any fees beforehand is also a smart move as there’s nothing worse than being caught out by an unexpected annual management fee. Although it may seem boring, it’s crucial to make sure the company is audited by the relevant governing body. Too many people have been scammed by professional-looking companies, so check that they’re regulated before you hand over any personal details or money.

At LTArt, we believe that art investment should be accessible to everyone. Blue-Chip art has been reserved for the elite for far too long, and thanks to innovative technology, such as blockchain, and new models of art ownership, we have found a way to not only democratise the art market but also invest in a long-standing, traditionally elite alternative asset class. What do you make of fractional ownership when it comes to investment? Do you predict that this will become more and more valuable in the future?

We’ve already seen challenger trading platforms make fractional share ownership a reality, especially with larger tech companies in the US whose share prices are hundreds of dollars each. When something seems so unaffordable, fractional ownership encourages more people to get involved, ultimately welcoming a new group of investors. And they’re probably more likely to stay with the company that offered fractional ownership even when their wealth grows, so it has longer-term outcomes, too. I personally think it’s a no-brainer; with fractional ownership, you’re educating people on the benefits of investing in different asset classes. Shares, art and wine all initially sound like they’re solely for wealthy people, so anything to make them more accessible is a win.

Many people feel held back when it comes to investing due to a lack of savings or spare income. What would your advice be to those who would love to start investing, but have small budgets?

Take 30 minutes to do a full MOT of your finances; see what's coming in, what's going out and if there's any areas that could do with some TLC. Maybe you need to start your F***U fund (3-6 months of cash savings), maybe you could save more, maybe you could start investing, but starting with a good overview is essential. If you’re in a good position to start investing some of your longer-term savings, make sure you’ve done your research about the type of investment that suits your circumstances and chat with a like-minded community to build your confidence. Once you’re ready to invest, it’s a good idea to build up a few hundred pounds before placing a deal to cover any trading charges included. Other than that, get started! The best time to invest was yesterday, the next best opportunity is today.

Female Invest’s book “Girls Just Wanna Have Funds” is available now on Amazon and all good bookshops. For more information on their membership, please head to the Female Invest website or follow them on Instagram.