Rahul Jain
It has been a significant decade for India. From the boom in smartphone adoption to the disruptive rise of fin-techs, the country witnessed breakthroughs on several fronts.
Among the many path-breaking changes India has seen and one that deserves a special mention is the colossal rise of its women as investors.
In what was considered a male-dominated bastion for long, women are slowly making headway with their smart investing and willingness to participate in financial decisions, something which they rarely did in the past.
Numbers reflect confidence
A recent survey by an online lending platform found 76 percent of women in the country making their own decisions in investment. The survey included more than 8,000 working women in the 25 to 45 age group, comprising metros and non-metro cities.
In addition to this, according to a 2019 Morning star report, the assets handled by women fund managers stood at 15 percent of the overall industry, both in terms of open and close-ended funds, amounting to approximately Rs 3.4 lakh crore.
A leading tax and investment platform registered a growing number of women investors and found that women on average, invest 12.7 percent more than her male counterparts.
These numbers are a clear reflection of the growing confidence among women when it comes to investing and a large part of this stems from digital proliferation.
Rise of DIY platforms and improvement in education giving the push:
The rise of DIY platforms provided the much-needed impetus and intuitive interface for ease in investing and the requisite information on various financial avenues and tools.
With many mobile apps now available, it has become easy to learn and master personal finance in a simple and lucid manner, without jargons and complexities.
This access to information has played a pivotal role in boosting confidence and allowed women to go from hesitant first steps to stronger strides when it comes to their familial investments.
One such platform is our Edelweiss Mobile Trader App, which has seen usage by women increase 50 percent from FY17-18 till March 2020.
Also, with improvement in educational opportunities over the past 10 years, women are getting greater insights into current events and are owning up to their rights, thus eliminating gender gaps in workforce participation and literacy.
Need for a structured approach:
While the growth of women taking financial decisions and being financially independent, is worth celebrating, a structured approach would be more beneficial.
Online tips and tricks are great as starting points, setting definite financial goals and making disciplined investments, backed by professional advice, can make a world of difference.
At the same time, actively participating in financial decisions with their spouses can eliminate the awkwardness of discussing money matters and help in creating more holistic wealth for the family.
Also, any investment, irrespective of how big or small it is, needs to be done keeping in mind the need for liquidity, risk appetite, and investment horizon. Leveraging the services of a certified financial planner can help women identify these crucial aspects and invest accordingly.
More active and serious participation required:
To stay ahead of the curve when it comes to investment decisions, it is essential for women to start participating actively in finances from a young age.
They need to learn the basics of investing such as opening a bank account, withdrawing and depositing money, net banking and varied financial instruments such as fixed and recurring deposits. Also, they should be encouraged to ask questions and know their legal rights to investment and property.
As a society, it is our responsibility to encourage women to participate in financial decision making and to empower their financial independence. By providing them with equal opportunities in every sphere, including personal finance and investments.
As per a report by McKinsey Global Institute, India could add up to USD 770 billion to its GDP by 2025, simply by doing this, to strengthen the country’s vision to be a USD 5 trillion economy by 2024.
In conclusion:
It’s high time that women continue to evolve as investors, move beyond budgeting and take charge of their and their family’s financial future.
This Women’s Day, every woman must aim to be financially literate, set a goal and invest in making her dreams come true.
(The author is Head Edelweiss Personal Wealth Advisory)
Disclaimer: The data is collated from various data sources such as Clear Tax, ET.com, World Economic Forum, and The Banking Finance. The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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