“When I received my salary for the first time, I immediately started a Systematic Investment Plan (SIP) in a few equity schemes. As for planning finances for my family, my husband and I regularly discuss and plan for various personal and family-related goals, both short-term and long-term. Alongside, we also build our individual portfolios. Infact, we have already started planning and investing for the higher education of our 7-year-old child!”
While highlighting her own personal finance trajectory and how she manages finances at home, Sunaina Da Cunha, who is the current Co-head of Fixed Income (Credit) at Aditya Birla Sun Life AMC Limited and has a rich, 17-year experience in managing fixed-income funds, also highlights how women have a natural tendency to save and nurture money, which, coupled with digitization, ultimately benefits the economy at large.
“Traditionally, we have seen that women in India are good savers. Managing the monthly household budget automatically becomes the women's domain. Majorly, these savings tend to either remain as cash, increasing the currency in circulation, or get invested in physical gold. While there are no numbers on the extent of such savings – with digitization, these savings can find their way into the formal investment channels and economy and provide a great capital pool, both for women and the economy”.
In addition, the structured abundance of data, information, and online facilities, particularly in urban areas has brought investing to one’s fingertips, a phenomenon that has immensely benefited women.
“Now, there is no need to step out to the bank (and maybe depend on someone to take you). At a click of a button, one can invest and redeem. Video KYC can be done in minutes from home. Monitoring and tracking of investments can be done through various apps. Additionally, mobile banking also provides privacy so women can keep control over who is privy to their financial information”.
Cunha also credits the prevalence of Micro-loans in enhancing and transforming the economic lives of rural women. Per her discussions with various stakeholders on the ground level, “these MFI loans have increased economic activity at the rural level and transformed individual lives and families. They have given a sense of confidence to the women in their ability to take care of themselves and their family's financial wellbeing. Digitization and spread of microfinance in rural areas, alongside the spread of microfinance, has eventually resulted in greater financial inclusion”, she adds.
Notably, the Reserve Bank of India defines Microfinance as a financial service that provides small, collateral-free, and productively purposed loans and other financial services to poor, low-income but economically active households that might not find themselves under the ambit of the traditional banking system.
While Da Cunha recounts enjoying the privilege of having a supportive family to propel her dreams and ambitions in the fund management space, she does wish for increased measures for work-life balance and flexibility for women, so that they continue to thrive in this space and continue to become mentors for young women entering this space.
“We are seeing more women take up roles in investments and fund management. I think women as mentors for other women and having more women role models could result in greater participation while bringing about a more rapid change. Many women tend to drop out at the mid-management level and take a break in their careers due to childcare or caring for parents. That can be avoided with a flexible, hybrid, and balanced work-life model”, she said. “For instance, when my son was born, a hybrid work model allowed me to navigate that phase and find balance”, she remembers.
Quoting Amitabh Kant, CEO of Niti Aayog in a study that says that “India has only about 24 percent women in the workforce and if we were to take it up to the world average of 48 percent will be adding close to $700 billion to India's economy”, Cunha signs off with the hope that many women, both from rural and urban domains enter the financial space as leaders and participants in order to take India ahead.
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