Women show a 5% higher monthly savings rate for future goals. Their SIP investments have a 19% lower stoppage rate, affirming their resilience as long-term investors, said a new study, which unveiled a remarkable 42% rise in women investors, saving 5% more for future goals than men.
Also Read: Retirement Alarm! Is India Financially & Emotionally Ready For Golden Years?
FinEdge, the tech enabled investment management company, conducted a study among 3,763 women clients from the age bracket of 23 to 76 years in August 2023.
Notably, 30.82% of women prioritise retirement planning, signalling a major trend shift. Women also showed resilience in goal-based SIP investments, with a 19% lower stoppage rate, emphasising their commitment to long-term financial goals.
Harsh Gahlaut, CEO, FinEdge, said, “We are delighted to see more and more women leading the way and helping their family’s financial plan. Temperamentally, women make better investors than men as they are less speculative, and more purpose driven. This makes them excellent long-term investors as their resilience allows them to benefit from compounding. We are certain that this trend will gather momentum in the next 3-5 years.”
Women have distinct financial challenges, requiring a unique investment approach
The study also aimed to uncover some of the key challenges mentioned below that women investors face on their wealth creation journey:
- Career breaks for family care
- Excessive risk aversion affecting returns
- Distrust in sales-focused advisors
- Limited awareness of key investing concepts
- Confidence gaps due to traditional gender roles
More women are focusing on their own retirement
Retirement planning is gaining traction among women. A notable 30.82% prioritise it, second only to child education planning at 32.82%. This shift marks a new era where women independently plan for retirement or contribute equally to joint plans, ensuring financial resilience in unforeseen life events.
“Without a doubt, the increasing number of women who are entering the workforce and excelling at their careers is driving the trend towards increased financial independence,” said Gahlaut.
When guided properly, women embrace measured risk taking and benefit from compounding
Another interesting inference was that 87% of women opt for equity-oriented SIP investments, slightly below men at 89.9%. This statistic is a clear indicator that the new generation of women investors are no longer shackled by their innate risk aversion.
The average age of women investors was found to be 38.67 years, which was around 2 years less than the average age for male investors, which came in at 40.34 years.
Women are investing more than men for their goals, with clear and holistic goal-based plans
On average, women have 3.47 financial goals, while men have 3.74, showcasing a holistic approach. Women invest an average of Rs. 14,347 monthly, slightly higher than men at Rs. 13,704, challenging traditional assumptions.
Women’s investment management needs are unique, differ from those of men
FinEdge also conducted detailed feedback sessions with their investment experts who manage investments for women clients, to glean qualitative insights on what women look for in their investing platforms. The following factors topped the list:
- Trustworthiness and reliability
- A non-sales centric approach
- A goal-based investing platform that is not complicated
- Hand holding by an investment expert who is willing to explain the nuances of investing
- Empathy, sensitivity and customisation
Survey Methodology
The survey was conducted by FinEdge in the month of August this year. The sample comprises 3,763 women clients of FinEdge from the age bracket of 23 to 76 years. The study includes clients from across the region ranging from the West, East, North and South.
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