The gift that keeps on giving: Designing investment products that work for women

Every International Women’s Day invites reflection on progress made and the work that remains. Over the past decade, conversations around women and finance have expanded dramatically. We see more initiatives focused on financial literacy, entrepreneurship, and leadership. Yet when we look beneath the surface of these efforts, a stubborn reality remains: women still accumulate significantly less investment wealth than men.

The gap is not primarily about income. Women today are more educated, increasingly represented in the workforce, and, in many cases, financially independent. Yet even high-earning women often hold fewer investment assets, particularly in growth-oriented instruments such as equities.

The problem, in many cases, is not capability or motivation. It is designed.

The investment environment problem

Traditional finance assumes that individuals behave like rational agents: they process information objectively, weigh risk and return, and allocate capital efficiently. If this were true, the primary policy lever would simply be education. Teach people about investing, and they will invest.

However, behavioural research tells a different story.

Financial decisions are shaped not only by knowledge but also by psychological and structural factors such as cognitive load, confidence, social norms, and the design of financial products themselves. For many women, investing environments unintentionally create friction.

Consider the typical investment journey:

Investment products are presented with technical language and complex structures.

Risk is framed primarily in terms of potential loss rather than long-term opportunity.

Investment decisions often require large initial commitments or complicated account setups.

Advice channels may not fully reflect women’s financial priorities, such as long-term security, flexibility, and intergenerational planning.

These factors create subtle barriers that discourage participation, even among financially capable individuals.

As research has shown, people do not operate in a vacuum. They respond to the architecture of choices presented to them.

From financial literacy to choice architecture

This insight shifts the question from “Why don’t women invest more?” to “How are we designing investment environments?”

Choice architecture, which is the way options are structured and presented, has been shown to significantly influence behaviour across domains such as retirement savings, healthcare decisions, and consumer finance.

For example:

Automatic enrolment dramatically increases retirement participation.

Simplified contribution choices increase savings rates.

Default investment options guide long-term asset allocation.

The same principle applies to women’s investment participation. Instead of expecting investors to overcome structural friction, financial institutions can design products that align with behavioural realities.

Designing for participation

One example of this approach is the concept behind the Wealth for Women Fund, which was created with a simple but powerful idea in mind: investment products should reflect how real people make financial decisions.

Rather than assuming perfect rationality, the fund’s structure incorporates elements that reduce friction and support consistent investment behaviour.

First, the product emphasises accessibility. Many women, particularly first-time investors, face uncertainty about where to start. Simplifying the entry point through clear communication and manageable investment thresholds can make the difference between intention and action.

Second, the design encourages long-term wealth accumulation. Women typically have longer life expectancies and may experience career interruptions due to caregiving responsibilities. Investment products must therefore support sustained, long-term participation rather than short-term trading behaviour.

Third, the product integrates behavioural framing. Research consistently shows that individuals respond differently depending on how financial decisions are presented. Framing investment as a pathway to financial independence and security, rather than as speculation or risk-taking, resonates more strongly with many women.

These design choices do not change women’s capabilities. They change the environment in which decisions are made.

The power of compounding

Perhaps the most powerful aspect of investing is time.

When individuals begin investing early and remain invested consistently, compounding becomes a powerful engine of wealth creation. Yet many women enter growth-orientated investments later in life, often after years of prioritising savings or family financial responsibilities.

Closing this timing gap is critical.

Consider two investors who save the same amount annually but start investing at different points in their careers. The investor who begins earlier benefits disproportionately from compounding returns. Over decades, the difference can be substantial.

Encouraging earlier participation in diversified investment products is therefore not merely a financial strategy; it is a structural solution to the wealth gap.

The gift that keeps on giving

Investment, at its core, is about building future security. For women, the stakes are particularly high. Longer life expectancy, career breaks, and evolving family structures make long-term financial resilience essential.

But investing is also something more.

When women invest, the impact extends beyond individual portfolios. Research shows that women are more likely to reinvest in their families, communities, and future generations. In this sense, women’s wealth creation produces broader economic and social benefits.

This is why investment participation should be viewed not only as a personal financial decision but also as a development priority.

The Wealth for Women Fund reflects this philosophy. It is not simply a financial product; it represents an attempt to redesign the investment environment so that more women can participate, stay invested, and benefit from long-term wealth creation.

That is why it can truly be described as the gift that keeps on giving.

Rethinking the future of investing

If the financial industry is serious about closing the gender wealth gap, the solution cannot rely solely on education campaigns or motivational messaging.

Instead, institutions must rethink the systems and products that shape investment behaviour.

This means asking new questions:

Are investment products designed for real human decision-making?

Do investment environments reduce or amplify psychological friction?

Are financial systems structured to support long-term participation?

For asset managers, regulators, and financial educators, the challenge is not simply to inform investors but to design systems that work with human behaviour rather than against it.

On this International Women’s Day, the most meaningful progress may come not from encouraging women to adapt to financial systems but from redesigning financial systems to better serve women.

When that happens, investing becomes more than a financial activity.

It becomes a generational gift.

And like all well-designed investments, it continues to give long after the initial contribution.

 

Dr. Odiri Oginni, CFA