Increased Financial Awareness
One of the main reasons behind the growth of female investors is the heightened emphasis on financial understanding. Throughout the years, women have pursued knowledge in areas such as personal finance, investment strategies and wealth accumulation.
The emergence of digital learning resources for finance, investment-related blogs, webinars and podcasts has simplified the process for women to grasp and engage in the financial market. It made things easier for them to invest.
As per report shared by Business Standard, a substantial 72% of women now make autonomous investment decisions. Specifically, 75% of women aged 25-34 and 70% aged 35-44 are actively managing their financial futures
Shift from Traditional to Modern Investments
Women are expanding their investment horizons, going beyond the conventional options of gold and fixed deposits to actively seeking out equities, mutual funds and alternative assets. Their increasing financial confidence is also evident in increasing participation in direct stock market. Women now represent 25% of all investors and own 33% of mutual fund AUM as per a report shared by ET. This change is evidence of their growing influence in charting India’s investment trajectory, adopting a myriad of avenues in accumulating wealth and securing their futures.
Rise of Independent Financial Decision-Making
While institutional support and financial literacy initiatives have been critical, many women have developed their own investing skills. The rise of self-taught female investors demonstrates their determination and adaptability. Many women are taking the initiative to educate themselves by self-study, trial and error, and independent research.
More women are handling their finances independently, without relying on family or spouses. Digital platforms and easy-to-use investment apps have empowered women to manage their wealth efficiently. As per a report by SBI, the participation of women in domestic stock markets has surged with female accounts, nearly 1 in every 4 new market investors. This reflects greater financial inclusion and a more active role of women in managing their finances.
Growth in Women Entrepreneurs & Investors
The rise in female entrepreneurs has led to more women investing surplus income in equities, mutual funds, etc. As per a report by Business Standard, the proportion of women investors using fintech channels has skyrocketed from 14% to 55% in just five years, showcasing their adaptability to technological advancements in the financial sector. Women investors are demonstrating a strong inclination towards long-term investing. They invest 25% higher amounts per investor and maintain an average investment corpus 37% higher than men. This strategic approach has resulted in 22% higher persistence in mutual fund investments over a five-year period.
Another major shift in the world of investing is the emergence of investment groups and networks led by women. Online platforms and social media have opened up avenues for women to unite, exchange investment knowledge, and encourage one another in their financial paths. Spaces such as Facebook groups, LinkedIn networks, and specific investment clubs designed for women have provided opportunities for them to engage in discussions about tactics, request guidance, and work together on investment ventures.
Geographic Variations in Investment Preferences
Women in B30 cities still prefer old-age investment avenues such as fixed deposits and gold, but with increasing interest in mutual funds. In contrast, women in T30 cities are adopting newer investment alternatives like equities and digital assets. Financial institutions are developing women-focussed products with benefits such as a lower rate of interest on loans and improved insurance cover to cater to this changing scenario. Government schemes, such as Sukanya Samriddhi Yojana and women-oriented investment programs, are also contributing significantly towards increasing financial inclusion and making women manage their finances actively. This change is fueling financial independence across geographies.
The rise in women’s investing is not just a personal financial milestone; it is a societal shift that paves the way for economic empowerment, gender equality, and a more inclusive financial future. Women are no longer passive participants in the investment world; instead, they are active, strategic, and influential investors thanks to increased access to financial education, specialized investment platforms, and strong community support. Additionally, their ability to evolve independently through self-education, digital tools, and entrepreneurial reinvestment highlights their growing confidence in managing wealth.
(The author is Director, Master Capital Services Ltd)
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
