Underrepresented voices: Inclusive investing study
- Black and Hispanic survey respondents care more about the social impact of companies they invest in, as well as having more control over their investments.
- 86% of survey respondents are concerned most about rising inflation and interest rates.
- Women are more cautious with their investments than men, though many women feel more financially secure than five years ago.
In the United States, there’s a notable difference in wealth between different groups of people, which can be examined through a number of lenses, including gender and race. Closing this investing divide is critical – but how do we bridge the gap? One answer could lie in financial markets: people who get invested can grow their wealth faster over time.
If we want to attack the gender and racial wealth gaps, we first need to understand what motivates – or prevents – us from getting invested.
We asked more than 2,000 Americans across race, gender and wealth levels to share their thoughts about investing today. The J.P. Morgan Wealth Management Diverse Investor Study found that our backgrounds and experience do lead to differences in our attitudes toward investing.
Investing preferences of Black and Hispanic respondents
J.P. Morgan research found that Black and Hispanic respondents prioritize the social impact of companies they invest in, as well as having more control over their investments. Investing to build a legacy and create generational wealth were particularly important to Black and Hispanic respondents, who are more likely to say one of the main reasons they invest is to give their children a better life.
Respondents’ sentiment toward markets
Market volatility, inflation and rising interest rates have remained top of mind for folks. Over half (51%) of survey respondents say they don’t pay attention to how the market is affecting their personal finance, and only 56% of those surveyed check their accounts often. However, that number rises for Black and Hispanic respondents: 62% of Black respondents and 61% of Hispanic respondents check their accounts often.
Financial attitudes of women
Women investors said they are more cautious than men toward their investments, though a majority of the women participants (59%) say their financial situation is better now than it was five years ago. However, 47% women are having a hard time finding more information regarding investing (versus 33% of men).
Methodology
The J.P. Morgan Wealth Management Diverse Investor Study was conducted April 26 – May 9, 2022. The results are based on a nationally representative sample of 2,014 general population American adults aged 25 to 64 with investable assets, including oversamples for both Black and Hispanic Americans (692 White respondents, 594 Black respondents, 624 Hispanic respondents, and 58 Asian respondents). Respondents were interviewed online in English and Spanish. J.P. Morgan Wealth Management was not identified as the survey sponsor.
