Investment Choices Shaped by Gendered Habits May Skew Markets and Sap Returns

A study by Bloomberg found that male fund managers tend to invest in sectors they personally consume, such as energy, finance, and cars, while female fund managers invest in healthcare and personal care. Portfolios with a "masculine" tilt tend to underperform, and the researchers suggest that gender parity would see funds flow towards healthcare and tech, away from fossil fuels and finance. The study warns that investment decisions shaped by gendered habits may skew markets and sap returns.

Investment decisions are often influenced by a multitude of factors, including personal experiences, risk tolerance, and financial goals. A recent study by Bloomberg has shed light on a significant yet overlooked aspect of investment behavior: the influence of gender on sector preferences. The study found that male fund managers tend to invest in sectors they personally consume, such as energy, finance, and cars, while female fund managers invest more in healthcare and personal care. This gender-based bias in investment decisions can have profound implications for market dynamics and overall returns.

According to the study, portfolios with a "masculine" tilt, which are heavily invested in sectors like energy and finance, tend to underperform. This is because these sectors are often more volatile and sensitive to economic cycles. In contrast, sectors favored by female fund managers, such as healthcare and personal care, tend to be more stable and offer steady growth. The study suggests that promoting gender parity in investment decisions could lead to a more balanced and diversified market, potentially enhancing overall returns.

The implications of this study are significant. It underscores the importance of diverse perspectives in investment decision-making. By encouraging gender parity, the investment community can tap into a broader range of insights and experiences, leading to more informed and balanced investment strategies. Moreover, it highlights the need for greater awareness and understanding of the subtle biases that can influence investment behavior.

In the context of the broader financial landscape, this study also underscores the importance of inclusive policies and initiatives. For instance, the British Business Bank's £500 million package to support diverse and underrepresented investors and founders aims to reduce the significant gap in venture capital investment for underrepresented founders and investors [2]. Similarly, the World Bank's Women, Business and the Law project and the World Economic Forum's Global Gender Gap Report emphasize the need for stronger laws, institutions, and outcomes to close gender gaps and unlock the economic potential of women [3].

In conclusion, understanding and addressing gender bias in investment decisions is crucial for creating a more balanced and efficient market. By promoting gender parity and fostering diverse perspectives, the investment community can enhance overall returns and drive economic growth. As investors and financial professionals, it is essential to be aware of these biases and strive to make investment decisions based on sound analysis and informed insights, rather than personal habits or stereotypes.

References:
[1] Bloomberg. "Gender Bias in Investment: A Study of Sector Preferences and Market Impact." July 2025.
[2] TechCrunch. "UK Launches £500 Million Package to Support Diverse and Underrepresented Investors and Founders." July 13, 2025. [https://techcrunch.com/2025/07/13/uk-launches-500-package-to-support-diverse-underrepresented-investors-and-founders/](https://techcrunch.com/2025/07/13/uk-launches-500-package-to-support-diverse-underrepresented-investors-and-founders/)
[3] World Economic Forum. "Global Gender Gap Laws, Institutions, and World Bank." July 2025. [https://www.weforum.org/stories/2025/07/global-gender-gap-laws-institutions-world-bank-wef/](https://www.weforum.org/stories/2025/07/global-gender-gap-laws-institutions-world-bank-wef/)