Wanted: A Lalitaji to nudge women to take control of their finances

Many home-makers still struggle to have their say in how they want to invest their savings or even ask about the status of their old investments.

Over the past five years, financial awareness, knowledge levels and participation in financial products have gone up among women. The number of women who buy life insurance has risen to 34 percent in 2023 from 32 percent in 2018.

Until 2023, women accounted for one-fifth of the investors in mutual funds. The stock market surge has seen more women trying their hand at freely available apps and platforms.

A growing number of working women are taking an active interest in managing their savings better. Many married women, especially those marrying a bit late, choose to keep their finances separate and not pool them with their spouses' incomes.

Homemakers with work experience interact with financial planners if their spouses are busy. Those who feel confident about their financial situation are bold enough to walk out of unbearable relationships.

But the tribe of women who understand that taking control of their finances gives them the freedom of choice is still small.

Long way to go

During our interactions with women at corporate workshops and literacy sessions, we came across a large number from varied backgrounds who either lack the confidence or the willingness to actively manage their investments in a way that prioritises their long-term well-being.

Questions such as “How much minimum commitment is required in a mutual fund?” or "Which is the safest mutual fund to invest in?” are often asked by women, even in urban centres like Mumbai, the financial capital.

Self-employed professionals, freelancers or home-based entrepreneurs don’t shy away from talking about their ventures and hawking their products. However, active money management is either relegated to family members or is not even considered!

Priya Nayak, a 40-year-old, self-employed professional, juggles between her assignments and her daughter’s daily school chores. It took almost four months of nudging and chasing to get her to share statements of her existing investments.

Her portfolio wasn’t a pretty picture. Most of her savings were in endowment plans where she paid more in premiums than the actual sum assured. A proposal was sent to her with a clear action plan for each of her investments. It has been three months and Priya is yet to revert.

Many homemakers still struggle to have a say in how they want to invest their savings or even ask about the status of their old investments. Those who take an active interest in discussions with the family’s financial planner don’t go beyond goal discussions and budgeting.

A home-based food entrepreneur in a Mumbai suburb was keen to invest her savings from her business in mutual funds at regular intervals.

“I would like to experience that I can grow my savings so that I feel good about it” was the clear reasoning she had. After the initial few discovery and knowledge sessions, she stepped back as the idea of her wanting to handle her savings independently didn’t go down well with the family.

Family dynamics are a crucial deciding factor in how women work to be self-reliant in managing their money.

Also read | Breaking the glass ceiling: How women CAs have become their own bosses

The way forward 

As finance professionals, we encourage and urge women to participate in investment decision-making during client interactions. But is that enough to motivate women to be part of the great financialisation of the savings drive that India is witnessing?

There are 1,300 investment advisors and about 250,000 distributors serving the working population of about 400 million.

The bigger push has to come from financial services companies such as banks, asset management companies and insurance companies. While social media has made it easier for financial service providers to communicate and connect with people, considering the level of awareness especially among women, there is a lot to be desired.

While financial service companies showcase women as being conscious about family goals and finances along with the spouse, the product remains the central theme of such advertisements. Women are either shown as conforming to the male counterpart’s suggestions or as someone changing diapers and at the same time, thinking about securing the child’s future!

Also read | Women’s Day: How Rajasa of Franklin Templeton juggles between baby and balance sheets

Re-creating Lalitaji for Samjhdhari in investing

Lalitaji, the iconic Surf Excel ad character, was an outspoken, practical and confident woman who told us about spending money to buy quality products instead of cheap ones. In the 1980s, when the advertisement was released, the portrayal made an instant connection with the audience at large as women liked the idea of being shown as a smart decision maker.

Fast forward to 2024, when we have a larger population of women at the helm of companies, businesses, and households. But if they don’t feel confident about making the right choices, then it's time the financial services companies introduce a Lalitaji in a new avatar.

A Lalitaji who taps her forehead and convinces us to save for retirement.

A Lalitaji who tells us about the importance of taking risks or chances in investing!

All names have been changed to protect client confidentiality.