A decade ago, the idea of women actively investing their money - beyond gold, fixed deposits, or insurance - was still met with hesitation. While women were encouraged to save for security, major financial decisions were typically made by men - be it the husband, father, brother, or uncle.

Traditional beliefs portrayed the stock market, mutual funds, and high-yield investments as “too complex for women to grasp”, resulting in these domains being largely male- dominated. But today, that narrative is changing. Indian women are no longer just wealth preservers. They are also wealth creators. More women are entering the stock market, investing in mutual funds, and exploring alternative asset classes.

The Rise of Women Investors: What’s Driving It?

The National Stock Exchange (NSE) reports that women now account for nearly 25% of the investor base, a 6.8-fold increase since 2015. In other words, 1 out of every 4 new investors in the Indian stock market is a woman. This growth is particularly evident among younger women, with 69% of female investors under 40.

One of the key drivers behind this surge is rising financial awareness. Women investors are now taking an active role in understanding risk, returns, market trends, emergency savings, and retirement planning. Unlike previous generations that relied on male family members for financial decisions, today’s women have more exposure to financial education through online platforms, social media, and dedicated women-centric investment communities.

Alongside these, greater workforce participation has increased women’s income, granting them both financial and economic independence - and with it, the financial muscle to invest. The rising number of women in high-paying jobs and entrepreneurial roles has led to greater disposable income and a stronger inclination toward wealth creation. This shift is simultaneously proving to be a boon for gender diversity.

The COVID-19 pandemic also acted as a catalyst. The financial uncertainties of the period prompted many women to take a more hands-on approach to their money. With traditional savings avenues offering low returns, women increasingly explored mutual funds, stocks,and other investments to ensure financial security. However, one question still remains: Are women truly on equal footing with men in the investment game, or are they still playing catch-up?

Challenges That Still Persist

Despite this progress, there are roadblocks that prevent women from achieving true financial parity with men when it comes to investing. A study by DBS Bank India and CRISIL shows that 51% of Indian women still prefer low-risk investment instruments like fixed deposits and savings accounts, with only 7% investing in equities. This reluctance to take risks stems from multiple factors: higher career breaks, the responsibility of supporting senior family members, and planning for life events like sabbaticals or maternity leave.

Another significant factor is societal conditioning. Women have traditionally been encouraged to be conservative with money, prioritizing security over growth. The lack of early exposure to investing further explains this cautious approach.Additionally, financial literacy gaps continue to exist. While awareness is growing, many women still lack confidence in making independent investment decisions. Family influence, outdated perceptions, and limited representation of women in financial advisory roles further contribute to this hesitancy.
Moreover, the gender pay gap indirectly affects investment behavior. Although some women enjoy greater disposable incomes, many still earn less than their male counterparts, leaving them with less capital for investments. As a result, their risk aversion is often driven by necessity rather than choice.

How Can These Challenges Be Tackled?

Bridging the investment gap requires a well-rounded approach. First, financial education needs to start early. Schools and colleges should incorporate investment literacy into their curriculum, ensuring that women gain confidence in handling money from a young age.

Second, mentorship and peer learning can play a crucial role. Women-led investment forums and networks can help build confidence by allowing women to learn from each other’s experiences. The success of women-focused investment platforms has already demonstrated the power of community-driven learning.

Third, financial institutions, advisors, and AMC-led investor awareness programs should continue designing products that cater specifically to women’s needs. Women-only investment plans, goal-based investment advisory, and flexible risk-assessment tools can help women ease into higher-yield investments at their own pace.

Lastly, leadership representation matters. The appointment of Madhabi Puri Buch as SEBI’s first female chief signals a shift in the financial sector. Our finance minister, Honorable Smt. Nirmala Sitharaman, and many such women in leadership positions within investment firms and regulatory bodies can create a trickle-down effect, normalizing women’s presence in the investment space.

The Game Has Changed, But the Scoreboard Still Needs Balancing

Women investors are no longer a niche demographic. The numbers prove that women are stepping up and taking charge of their financial futures. However, breaking free from traditional financial stereotypes, overcoming risk aversion, and achieving true investment Parity with men is still a work in progress. The momentum is strong, and with the right financial education, institutional support, and change in societal attitudes, women won’t just be participants in the investment game - they’ll be leading it.

About the Author

Dilshad Billimoria is the Managing Director, Principal Officer and Chief Financial Planner of Dilzer Consultants Private Limited. She is a CFPCM Certificate Holder from the Financial Planning Standards Board of India (FPSB) and brings over 21 years of unparalleled experience in the financial advisory domain.