The French financial markets regulator, the Autorité des Marchés Financiers (AMF), has published a report examining the activity and standard profile of the average investor. Although men continue to dominate the group of retail traders, women are increasingly willing to engage in various forms of investment. The study was published on 8 March 2023, when many countries celebrate International Women's Day.

AMF Highlights the Increasing Number of Women Investors

For the first time, the AMF has released a study that provides insights into the activities of retail investors based on their age and gender, with the aim of identifying their typical profiles.

The study found that in 2022, men constituted 70% of active retail investors, while women made up 30%. The study also revealed that retail traders' behavior varied based on age. Specifically, men engaged in more transactions in the younger age groups, while the number of women participating gradually increased over time.

Only 17% of women under 35 described themselves as active investors, while more than 30% of their peers aged 55 or above traded actively. Overall, the group of active investors, both men and women, represents 2.1% of the entire French population.

"Regarding the amounts of equity transactions, we note that the amounts of women's transactions are very similar to those of men. Women in the younger age groups nevertheless tend to perform transactions for significantly larger amounts than men: 3 times larger for those aged 24 and under and 1.4 times larger for the 25-29 age group," AMF noted in its recent study.

The older the age group, the higher the percentage of women investing. For investors under 24, men account for 84% of all active traders. However, in the group over 65, the values start to equalize, and in the group over 75, the number of active female and male investors is practically the same.

French Women Prefer Equity Market

According to the AMF survey, most investors deal in equities (78.1%), followed by ETFs (13.4%), complex instruments (5.5% and bonds (3%).

"Among the differences noted, male investors are more numerous than female investors in complex products (6.6% of male investors versus 2.8% of female investors, for all age groups combined) and, conversely, female investors are more numerous than males in bonds (5.5% of females versus 1.9% of males, for all age groups combined)," AMF added.

It may confirm previous studies showing that female investors have a higher risk aversion and prefer to take safer investments, hence, they are more likely to go for bonds. Men, on the other hand, are willing to accept greater risk in search of higher returns.

"Less likely than men to be optimistic about changes in their own economic and financial situation, women are less likely to show an appetite for unsecured investments. They are less interested in equity investments, which they more often than men consider too risky. As a result, women invest less in the stock market than men," AMF concluded in another study published today, titled "Women and Investment."

According to a previous study from December 2022, the French financial market supervisor witnessed a drop in the sentiment among new investors to invest in the country's equities. However, existing French investors are more optimistic about the stock market.