Wealth, Wisdom and Insights From Women In Finance!

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Today, on the #WomenWednesday Financial Desk, we have

• Where were women?
• Women As Investors Today
• Next-Generation Female Investors
• Conclusion

Where were women in Finance??

Historically, finance was never a female-dominated field, but women have shattered these stereotypes. The world of finance was daunting for women as the knowledge was inaccessible to many. This stopped them from actively engaging in investment decisions. Multiple factors hindered them from entering the world of finance, including, but not limited to, a lack of financial literacy and mentorship etc.?

According to the reports, among the 11 million registered investors in the NSE, only 1 in 5 is a woman.?

The ratio of fund managers is no different. Women constitute only 8.88% of the total fund managers present in India. However, as of January 2024, women fund managers managed assets worth Rs.6.66 lakh.?

This track record is inspiring, highlighting women's progress on their journey toward financial empowerment.

Women As Investors Today

Today, women are investing more than ever, from real estate to stocks to retirement funds; the presence of women is visible everywhere. And there’s more to it than you think. A study by Fidelity showed that women tend to gain higher returns when they invest. Sounds fascinating, isn’t it? According to the survey, women focus more on long-term goals and try to avoid short-term investments, which limits transaction costs and, in turn, increases compounding returns. They also observed the investments made by women are generally backed by thorough research, which leads to reduced risk and stable investments.?

In fact, women’s investment habits are often characterised by a deep sense of research and risk mitigation. Because women generally prioritise stability and steady growth. This approach has proved advantageous in various investment categories, from equities to bonds. A study by BCG (Boston Consulting Group) noted that women are not just more risk-averse; they are also more strategic, ensuring that their portfolios align with long-term financial security.

There's also been a noticeable 20% increase in women's representation in advisory and wealth management fields. Contributing to this are women's work leaders like Sallie Krawcheck, author of Own It: The Power of Women at Work and CEO of Ellevest, a women-centred investment platform, who has been striving to voice the importance of financial planning and deliver tailored mentorship and benefits for women.?

Several organisations, including Alice Blue, organise trading and investment workshops for women to empower their future and help them become financially literate and independent. The primary motive here is to make financial knowledge accessible to everyone. The rise of financial mentors and influencers also helps women learn more about investing within the comfort of their own homes.

The Next Generation of Female Investors

Today's young women are not just educated about finance but also more confident in their investment decisions. Platforms like Alice Blue have further democratised financial knowledge, offering resources and workshops to empower young women to take control of their financial futures.

Additionally, female-focused financial networks and mentors have become more prominent. Women no longer have to look far to find role models in the financial industry, and the proliferation of online content aimed at women investors has helped them learn at their own pace. These educational avenues have provided women with a toolkit to make informed decisions about their portfolios, from stocks to cryptocurrency investments.

Conclusion

Women have made great strides in finance, already empowering their futures and making inspiring developments. Their discipline, research-driven investment approach, and long-term planning set them apart in terms of financial returns.

The next generation of female investors is set to make a lasting impact.

What other resources do you think can help empower more women to enter the world of finance? Let us know in the comments below!