Let's Talk About ‘Passion Investing'
It all felt overwhelming, but more than anything, it felt hollow. I was keen to start investing, about the prospect of potentially growing my money and making it work harder than it does sitting in a savings account, but when you feel like you know so little about the market and are time poor, that initial buzz can wear off quick as soon as the numbers and financial jargon buzzwords start blurring in front of you like a scene from a movie.
Then, I scrolled upon something that brought my buzz back: a female-founded tech company that prioritises women's safety in how it operates. Its performance looked great on the graph in front of me, but that wasn't what got me so enthused. I realised, if I was going to invest, I wanted it to have meaning beyond potentially making me some extra money. This was a company with a future I really believed in, one with values that clearly aligned with mine and gave me genuine hope that my investment would bring rewards outside of just potential financial gain.
Now, I know this to be a type of 'passion investing' – the practice of investing in something that you love. Typically, it involves buying tangible assets that also offer significant cultural value – classic art, for example, or fine wine. Certain cars would be considered a 'passion investment', as would some luxury designer accessories, as well as collectibles like stamps or coins that appreciate in value.
For those of us that don't necessarily have the budget to invest in high-price collectables, passion investing has taken on a whole new meaning then. For me, it's more about investing in things – whether that's stocks or tangible assets – that align with what I love. Take sustainable companies, for example, or those that pair closely with your core values – it's all part and parcel of the same method where investing becomes not just about potential financial gain, but supporting products or services you love and really believe in.
'Putting your money into industries, ideas and trends you truly believe in allows you to leverage your personal knowledge to generate potential profit, while aligning your portfolio with your values and vision for the future,' explains Lale Akoner, eToro Global Market Analyst. 'It's where conviction meets opportunity.'
In fact, research indicates that women are much more conscious of ethical investments compared to men. According to one UBS study, 71% of women make investing decisions with wider sustainability considerations. For other passion points, luxury bags have also seen a growth in investments - the Knight Frank Luxury Investment Index (KFLII) found that handbags were the best performing luxury asset class in 2024, with prices marginally rising 2.8%. Jewellery followed closely behind, with coins and watches also in the top five. Overall, investments in luxury assets have increased by 72% in the last 10 years.
'I've definitely dabbled in passion point investing in the past,' says Bola Sol, author of Your Money Live. 'During the rise of the 'rich aesthetic' influencer boom from 2010 to 2020, I invested in LVMH because I genuinely loved the brands under its umbrella and saw how influential they were culturally and commercially. That said, this isn't financial advice but a reflection of my personal journey. I think it's only natural for people, especially women, to want to invest in what they understand and resonate with. Whether it's beauty, tech, fashion, or ethical companies that reflect their values, passion point investing makes the process feel more accessible and intentional.'
Beyond the emotional fulfilment of passion investing, there's a wider benefit to all women – it shifts the perception of investing entirely. Right now, the gender investment gap is a staggering £678 billion*, the same as the GDP of Switzerland. Women cite a lack of knowledge, time and confidence in their hesitancy to invest – as well as a tendency to be more risk averse. That's why Grazia are working with eToro to tackle the gender investment gap, hoping to dismantle myths around investing and get women taking control of their financial futures and making their money work harder for them.
eToro's Smart Portfolios are a great place to start. 'Imagine putting your money into a pre-made basket of different investments that all relate to a specific idea you're interested in, like tech companies or clean energy,' Akoner explains. 'That's what eToro's Smart Portfolios do. These are long-term investment portfolios curated by analysts that offer a convenient and diversified way to invest in different themes. It can help take the guesswork out of picking individual stocks in those areas.'
And here's the thing, when you choose to focus on your passion points while investing, it makes the entire process more interesting. These are brands or areas you're already emotionally invested in, believe in their value and want to make the time to understand more about. Cutting out the financial jargon and stress of following markets day to day, it makes the investment process one you can embrace rather than fear.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Copy Trading does not amount to investment advice. Your capital is at risk. Past performance is not an indication of future results.
Cutting out the financial jargon and stress of following markets day to day, it makes the investment process one you can embrace rather than fear. Find the brands you're passionate about and discover new ones when you start investing on eToro .
This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient's investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.
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