The gender investment gap is “set to narrow” in 2025 as more women are planning to take on greater investment risk than men, according to analysis from digital wealth manager Nutmeg.

The J.P. Morgan-owned firm highlighted that the gender investment gap had narrowed “significantly” in recent years.

In 2025, 41 per cent of Nutmeg’s client base was represented by female investors, up from 24 per cent in 2013.

Furthermore, Nutmeg had observed a change in how women invest as the risk appetite of UK investors had evolved.

The proportion of women choosing to hold their investments in a medium to high risk managed investment portfolio has increased from 80 per cent in 2020 to 89 per cent in 2025, compared to 92 per cent of men.

New research from Nutmeg highlighted that this gender investment risk gap could close further in 2025, as 23 per cent of female investors were planning to take more investment risk this year compared to 19 per cent of men.

Millennial women were found to be driving this, with 58 per cent of women aged 35-44 planning to increase their investment risk this year compared to 36 per cent of men in the same age cohort.

Nutmeg head of financial advice and guidance, Claire Exley, noted there was a common myth that female investors were risk averse, but that its latest analysis showed that any historic risk imbalance between men and women was “smaller than ever and shrinking fast”.

“We have seen a clear shift in how people perceive investing in the UK with more looking to make their money work harder for them,” Exley continued. 

“The data tells a positive story; more women are now aiming to build their wealth over the long term by investing.

“While it is a positive step that more women are considering different ways to achieve their long-term financial goals, it is not an excuse for complacency. We can still do more to reframe what risk means when it comes to money.

"There are several kinds of risk, including inflation risk - where rising prices erode money’s buying power over time – and those who keep too much money in cash may find their savings can buy them less over the long term. 

"There's a balance for people to strike: taking steps to reduce the threat of inflation and potentially falling short of being able to afford the lifestyle you want, while being mindful that any investments carry the risk that your money can fall, as well as rise, in value.

“The industry must continue to make investment products and services accessible and appealing to female investors to ensure participation continues to increase. This can take many forms – increasing the visibility of female role models in the industry, improving access to financial education, and offering investment portfolios that resonate with investor priorities, whether in terms of risk or social responsibility, for example.”

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