Women and investing case study: Tynah Matembe, CEO of Money MatiX

Tynah Matembe, CEO of Money MatiX | Supplied

Q: Why are so few investors female?

A: There are several intersecting issues, the main one in my case being racial and gender profiling when I was trying to understand the new unfamiliar UK financial system. There was no investment guidance available to me.

Then there is the added nuance of traditionally being the primary carer. The early years of having children are a “black hole” many women never quite recover from – especially if one does not have a supportive spouse or network.

Q Why do women investors prefer low-risk options?

A When I was systemically jeopardised into financial vulnerability, my priority became building wealth to safeguard my children’s future. This emotional link to why I was investing meant that for a long time I was keen to make safe and solid investments until I felt comfortable in my children’s future security.

Myself and many of the women I coach at MoneyMatiX – especially those from immigrant communities – are deeply involved in entrepreneurial activities. Their investments might not be in traditional stocks and bonds, but in supporting these ventures, they are the biggest segment of unreported angel investors in the UK.

Q: Why do women investors invest more than men?

A Women tend to set more realistic expectations and are not typically overconfident. When they set their mind on investing, they will likely follow a practical, achievable and researched strategy.

Q: What is your experience of investing and working with women to invest?

A: Starting to invest was tough. I spent a long while learning the ropes, and I remember opening my first investment account and not using it for over a year.

When I did start, it was in a stocks and shares portfolio with my spouse and another couple. We opened a joint investment fund account and as that portfolio grew, my confidence with investing grew too and I ventured into diversifying.Often the women I coach invest cautiously at first. [I help them] identify what their risk appetite is and guide them to invest within their tolerance.

Q: What can be done to encourage more women to invest?

A: Tailored financial literacy campaigns for women that take into account typical lifestyles and barriers that women face are necessary. Women are not taught how to invest, and there is no safe space to explore the different possibilities. With so few role models in a male-dominated environment, intentional effort must be made.