By Brijesh Damodaran
My first lesson in finance didn’t come from a business book or a fancy degree. It came from my mother handing me ₹10 to buy fruits, vegetables, and milk—and expecting ₹1 in change. I still remember debating whether to spend that leftover rupee on ice cream or obey her trust. I chose the latter, and unknowingly, had my first encounter with the world of asset allocation.
Across India, millions of women have similar stories—of managing tight household budgets, saving for uncertain futures, and making careful decisions about how and where money should go. Yet, we rarely think of these women as investors or asset allocators. That’s a mistake.
The Invisible CFOs of Indian Households
For generations, Indian women have been managing money with quiet discipline. They know how to stretch a rupee, balance short-term needs with long-term security, and invest in ways that protect their family’s future. Whether it’s putting money into gold, recurring deposits, post office schemes, or chit funds—they’ve been allocating assets thoughtfully, even if they didn’t call it that.
A 2021 RBI survey found that nearly 63% of Indian women actively participate in financial decisions at the household level—from grocery planning and children’s education to savings and healthcare. Even when they don’t earn a formal income, they manage money with a razor-sharp eye for risk, liquidity, and value preservation.
India’s women also hold over 25,000 tonnes of gold, making them one of the largest holders of real wealth globally. What the financial world sees as a "store of value," Indian women have long used as a hedge against uncertainty. Their investment approach may be understated, but it is far from uninformed.
The Fintech Shift: Democratising Access
With the rise of digital platforms, financial inclusion for women is accelerating. Smartphones, UPI, and user-friendly fintech apps are making formal investing easier and more accessible. From SIPs and digital gold to fixed-income platforms and robo-advisory tools, women across India are engaging with new-age financial instruments on their own terms.
And they’re not just signing up — they’re staying. SIP retention data suggests that women investors have a 25% longer median holding period than men. They’re less likely to chase trends, less spooked by volatility, and far more consistent in their contributions.
When concepts like volatility and standard deviation are explained in simple, relatable terms, women are also more open to exploring higher-risk, higher-return asset classes. And perhaps most impressively — they’re not afraid to say “no”. That kind of self-discipline and conviction is something many male investors still struggle with.
From Kitchen Counters to Capital Markets
Despite these strengths, women remain underrepresented in institutional finance. While we’ve seen some prominent women lead banks and mutual funds, the ecosystem overall still lacks diversity — especially when it comes to asset managers, fund advisors, and decision-makers in capital allocation.
Yet the shift is inevitable. A Boston Consulting Group report estimates that women could control over $1 trillion in financial assets in India by 2030. That’s not just family wealth — it’s capital that can shape industries, influence markets, and drive inclusive economic growth.
The bigger opportunity lies in reimagining the financial system not just for women — but with them. Their grounded, methodical approach can help rebalance an investing world that too often swings between overconfidence and short-termism.
Rural Women: The Grassroots Allocators
The most underrated investors may be in rural India. In these communities, women form over 60% of Self Help Group (SHG) memberships and are the backbone of India’s thriving microfinance ecosystem. They manage rotating credit groups, keep informal ledgers in their minds, and maintain stellar repayment rates — all without a formal finance degree.
If provided with simple digital platforms in regional languages, structured investment products, and even low-ticket equity or debt instruments, these women could become a transformative force in India’s grassroots economy.
What India Stands to Gain
India is at an inflection point. As the middle class grows and financial products become more accessible, the role of smart asset allocation will define whether wealth is sustained or squandered.
By empowering more women—urban and rural—to make informed financial decisions, we’re not just promoting gender inclusion. We’re strengthening India’s economic backbone.
We need simplified KYC norms, gender-targeted financial literacy campaigns, more inclusive investment products, and mentorship programmes that guide first-time women investors through the system. More importantly, we need a shift in perception—one that recognises women not just as savers or dependents, but as decision-makers and investors.
Indian women have always been asset allocators. They’ve managed risk, preserved capital, and thought long-term—often more effectively than many trained professionals. As digital access, financial literacy, and institutional trust grow, their potential to reshape India’s financial future is limitless.
It’s time we stop underestimating them—and start investing in their power to invest.
(Brijesh Damodaran, Managing Partner, Auxano Capital.)
Views are personal and do not represent the stand of this publication.
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