Empowering Women: Insights into Investment Trends in India
Investment Trends Among Indian Women
A recent study conducted by The Wealth Company Mutual Fund reveals that approximately 70% of women in India save monthly. However, only about 40% venture into investments beyond conventional options like fixed deposits and gold. This indicates a notable disparity between saving and creating long-term wealth. The report, titled “Her Wealth, Her Way: A Study on How Women Save & Invest,” surveyed over 2,000 women from metropolitan and emerging cities, including Delhi, Mumbai, Kolkata, and others.
Increased Participation from Smaller Cities
Another significant finding from the report is the remarkable increase in female investors from smaller cities. Participation from women in non-metro areas has surged more than 2.5 times year-on-year, with Tier 4 cities experiencing a 140% increase, showcasing a trend towards greater financial inclusion beyond major urban areas. Mutual funds have become one of the top three investment choices for women across various age groups, primarily due to their accessibility and suitability for long-term investment.
Despite this progress, challenges remain. Many women still depend on family members for financial guidance and allocate only a small fraction of their income to market-linked investments. The report highlights that confidence is a significant barrier, as around 74% of women who do not invest allocate less than 10% of their income to financial products. Additionally, over half of Indian women rely on male family members for investment decisions, particularly in Tier 2 and emerging cities.
Encouragingly, nearly 80% of women mutual fund investors start investing before the age of 35, largely due to the adoption of systematic investment plans (SIPs). Once they enter the investment landscape, women tend to remain committed, with 86% planning to increase their investments over the next five years. The study also indicates that experience is vital for building trust; women who invest in mutual funds are four times more likely to trust them compared to non-investors. Furthermore, around 82% of women mutual fund investors are actively involved in household financial decisions, and nearly 57% are willing to invest in equities for the long term, provided that financial products are clearly explained. SIPs are the preferred entry method, with 64% of women investors choosing this route, especially among lower-income groups.