Women’s Day 2023: Rise in Female Investors!

Women in the 21st century are making strides and taking charge of their financial lives by investing in the stock market! Let’s dive deep into the story.

Topics covered

The Humble Beginnings

The Pandemic As A Catalyst

Women Will Take The Lead

For a long time, women in Indian households have been managing family finances, along with the demands of their careers, and can rightly be called the ‘Chief Financial Officers’ of their homes. However, when it came to their own finances, they often took a back seat. But times have changed, and women of the 21st century are stepping forward, breaking barriers, challenging stereotypes, and becoming prominent participants in the Indian stock market.?

Over the years, the number of female investors in India has steadily increased, with women now accounting for a growing proportion of the investment community. Today on the occasion of International Women’s Day 2023, it’s time to take a closer look at the rise of female investors in India and how they are transforming the traditionally male-dominated world of finance.

Let’s begin!

The Humble Beginnings

Once upon a time, women’s investment options were limited. Gold was the only treasure they could seek. And the result is prominent. According to India Times, out of every 100 tonnes of gold, a whopping 11 tonnes were held by Indian women!?

But as time passed, women have learned to diversify their portfolios. According to a CAMS study, until 2020, women were still cautious investors, with 62% of their wealth being poured into safe debt and liquid schemes. However, they are also starting to explore the exciting world of stocks, with 38% of their portfolios invested in the stock market.

The same study mentions that women were slowly taking over the mutual fund investment game! Women investors contributed a whopping 25% of all mutual fund sales, with a total of Rs 1,17,419 crores in 2020.

The Pandemic as a Catalyst

Then came the pandemic, and everything slowed down, including repo rates dropping to as low as 4%. As a result, traditional liquid investments like FDs lost their lustre, and hence investors turned to the stock market for better returns. And it seems like women investors were quick to follow suit! They, too, ventured into the world of the stock market, opening Demat accounts for the first time.?

Women Will Take The Lead

According to a recent research survey conducted by ET Money, women investors tend to deliver better returns on their investment portfolios than males. And there are several other studies which claim the same result.?

So, what makes women better investors than men?

Research shows that women take a careful approach, which leads to more cautious trading and investing for the long term, which can yield significant returns over time.

Furthermore, women trade less frequently than men and conduct more thorough research before making investment decisions. This disciplined and thorough approach helps women avoid knee-jerk reactions and impulsive decision-making, leading to more successful asset allocation.

So, this International Women’s Day 2023, encourage all the women in your life to take a step towards independence and invest in inflation-beating investments like the stock market to build wealth.

Happy Women’s Day!