- Date : 21/10/2021
- Read: 4 mins
Find out how women across age and income groups are investing their money.
Investment goals have changed a lot for women over the years across incomes and age groups. With better access to information and investment options, and higher salary packages, women are now smartly investing their money towards varied goals.
According to a recently conducted survey, 25% of women admitted that the information available on the internet was what motivated them to invest. Another 22% attributed the convenience of investment apps as a chief reason for to begin investing.
The survey also threw up some interesting findings:
1. The lure of high-risk, high-return stocks
Millennial women are more aware of the benefits of investing in shares and are willing to choose them over more traditional (and stable) options like fixed deposits. The survey showed that women between the ages of 18 and 25 were three times more likely to invest in high-risk and high-return investment tools such as shares.
2. Mutual funds are a friend to most women
Mutual funds have gained the title of the most preferred investment tool for Indian women. Irrespective of the income bracket, several women are investing in mutual funds to secure their varied financial goals.
3. Gold remains as attractive as ever
Despite the jump to high-risk shares, women are still inclined towards investing in gold. It was found that 25% of women who took the survey invested in gold. The number rose to 40% for women in the income bracket of more than Rs 10 lakh per annum. However, women are still investing in physical gold, such as jewellery. There may be a shift towards digital gold with time.
4. Women are saving for wide-ranging goals
About 57% of younger women are investing for their personal goals. 28% are saving for higher education and 20% for travel. In fact, one in four women is investing to fulfil their travel goals. On the other hand, women over 35 were found to be investing for their marriage and children’s higher education needs.
Interestingly, early retirement also surfaced as the primary goal for women in the Rs 30 lakh+ income group, as nearly 70% of women were found planning to retire early. In the Rs 10 to Rs 30 lakh bracket, 36% of women were saving for early retirement. This percentage was further reduced to 26% in those with annual salaries between Rs 5 lakh and Rs 10 lakh.
Half the women polled stated ‘personal goals’ as their primary reason for investing. And 43% admitted that they invest to generate income that could support their families.
5. Cryptocurrencies are not far behind
Cryptocurrencies made an appearance in investment portfolios of 6% of women earning more than Rs 30 lakh p.a. Among women earning less than Rs 10 lakh, only 4% showed an interest in investing in cryptocurrencies.
6. Real estate finds very few takers
Real estate investments tend to attract very few investors as it requires a huge capital investment that may not suit everyone’s budget. As a result, only women in the income category of Rs 30 lakh and above were found to be investing in real estate.
7. Tax savings and insurance lose steam
Only one in five women drawing a salary of more than Rs 10 lakh p.a. cited tax savings as the reason to invest. Only 18% admitted to investing in insurance schemes for similar reasons.
8. Some women still lag behind
While many women invest a major chunk of their incomes, 2000 women who participated in the survey did not invest at all. Of these, 13% stated ‘fear of losing money’ as a major reason. 32% did not have enough savings to invest, while 49% lacked the knowledge to start investing.
Women are increasing changing their attitude towards investing, with a greater focus on high-risk, high-return investments such as shares and real estate. However, there still remains a gap due to lack of access to the right information, fear, and other social concerns. Regardless of the reasons, as more and more women now work and draw high incomes, the number of women investors is only going to increase.