TomorrowMakers

Here’s how Indian women across income groups are investing their money.

Investment option for women investors

In the last couple of years, women have come forward and spoken about pay disparity in the workplace. Regardless of the field of work, unequal wages among genders have been a problem for decades. Thanks to the positive dialogue around the topic, many women across industries and roles are now being appropriately remunerated.

Further, due to the growing consciousness about financial independence and economic freedom, women are also investing their money to grow their net worth. There have been many changes in the attitude of women towards investing of late. A recent survey explored these changes and found the following patterns of investing in Indian women in 2021, based on their incomes. 

Women are banking on mutual funds for security

Like most investors, women are showing an inclination towards mutual funds as their most preferred tool of investment. Women across income groups are investing in different types of mutual funds to meet their financial goals. 

The higher-income bracket is investing in gold and real estate

About 40% of women earning a salary of more than Rs 10 lakh were investing in gold. Moreover, women earning an income of Rs 30 lakh and above were also investing in real estate. Real estate investments are limited to high income groups due to the high cost of investments involved in the purchase of a property. Gold, on the other hand, is a staple investment for women across income groups. Of all the women who participated in the survey, 25% were investing in gold. However, women are still investing in gold jewellery and not digital gold investments. 

Women earning high incomes are exploring cryptocurrencies

The survey found that 6% of women earning an annual salary of more than Rs 30 lakh were investing in cryptocurrencies. Cryptocurrencies were also an investment choice for 4% of women earning less than Rs 10 lakh per annum. There has been a shift in the investing choices of women from low-risk options like fixed deposits to high-risk options like shares and cryptocurrencies. According to the survey, millennial women prefer to choose high-risk, high-reward investment options over traditional savings plans. Women between the ages of 18 and 25 are three times more likely to invest in high-risk and high-return investment tools.

Early retirement is a common goal across income brackets

About 70% of women earning a minimum of Rs 30 lakh per annum were investing for the goal of early retirement. Early retirement was also a major goal for 36% of women in the salary bracket of Rs 10 lakh to Rs 30 lakh. And 26% of women in the Rs 5 lakh to Rs 10 lakh salary bracket also mentioned early retirement as one of their investing goals. 

Women are investing to save on tax

One out of five women earning a minimum of Rs 10 lakh per annum said they were investing to save tax, and 18% invested in an insurance plan over similar concerns. 

Related: Active or Passive Investing: What's your choice? (tomorrowmakers.com)https://savvywomen.tomorrowmakers.com/investing/active-or-passive-investing-whats-your-choice-article

Women are investing for different types of goals

Around 43% of women were investing to support their family, especially women above the age of 35 who cited their marriage and children’s needs as the primary reason for investing their money. Contrarily, a whopping 57% of younger women cited personal reasons for investing. 28% were investing for higher education. And one in four women that amounted to 20% of women were found investing for travel. 

Other important findings 

  • 25% of women attributed the internet for encouraging them to invest.
  • 22% stated the convenience of investment apps was a major reason why they were investing. 
  • Surprisingly, a significant chunk of women admitted to not investing their money at all. 
  • 13% said that the fear of losing money kept them from taking the leap.
  • 32% lacked the funds to invest. 
  • 49% also blamed their lack of knowledge for not investing. 

Related: How to invest in stocks like a pro

Last words

Women in the higher income groups are juggling real estate, gold, cryptocurrencies, and more. But women in lower income groups are also catching up with mutual funds, shares, etc. In general, the attitude of female investors has drastically shifted towards high-risk high-reward investments. 

The survey disclosed some very useful insights into the investing patterns of women. While some women may not be investing at all, others have shown a positive change towards understanding and exploring the power of investments to ensure their financial security.  How homemakers can start their investment journey.

In the last couple of years, women have come forward and spoken about pay disparity in the workplace. Regardless of the field of work, unequal wages among genders have been a problem for decades. Thanks to the positive dialogue around the topic, many women across industries and roles are now being appropriately remunerated.

Further, due to the growing consciousness about financial independence and economic freedom, women are also investing their money to grow their net worth. There have been many changes in the attitude of women towards investing of late. A recent survey explored these changes and found the following patterns of investing in Indian women in 2021, based on their incomes. 

Women are banking on mutual funds for security

Like most investors, women are showing an inclination towards mutual funds as their most preferred tool of investment. Women across income groups are investing in different types of mutual funds to meet their financial goals. 

The higher-income bracket is investing in gold and real estate

About 40% of women earning a salary of more than Rs 10 lakh were investing in gold. Moreover, women earning an income of Rs 30 lakh and above were also investing in real estate. Real estate investments are limited to high income groups due to the high cost of investments involved in the purchase of a property. Gold, on the other hand, is a staple investment for women across income groups. Of all the women who participated in the survey, 25% were investing in gold. However, women are still investing in gold jewellery and not digital gold investments. 

Women earning high incomes are exploring cryptocurrencies

The survey found that 6% of women earning an annual salary of more than Rs 30 lakh were investing in cryptocurrencies. Cryptocurrencies were also an investment choice for 4% of women earning less than Rs 10 lakh per annum. There has been a shift in the investing choices of women from low-risk options like fixed deposits to high-risk options like shares and cryptocurrencies. According to the survey, millennial women prefer to choose high-risk, high-reward investment options over traditional savings plans. Women between the ages of 18 and 25 are three times more likely to invest in high-risk and high-return investment tools.

Early retirement is a common goal across income brackets

About 70% of women earning a minimum of Rs 30 lakh per annum were investing for the goal of early retirement. Early retirement was also a major goal for 36% of women in the salary bracket of Rs 10 lakh to Rs 30 lakh. And 26% of women in the Rs 5 lakh to Rs 10 lakh salary bracket also mentioned early retirement as one of their investing goals. 

Women are investing to save on tax

One out of five women earning a minimum of Rs 10 lakh per annum said they were investing to save tax, and 18% invested in an insurance plan over similar concerns. 

Related: Active or Passive Investing: What's your choice? (tomorrowmakers.com)https://savvywomen.tomorrowmakers.com/investing/active-or-passive-investing-whats-your-choice-article

Women are investing for different types of goals

Around 43% of women were investing to support their family, especially women above the age of 35 who cited their marriage and children’s needs as the primary reason for investing their money. Contrarily, a whopping 57% of younger women cited personal reasons for investing. 28% were investing for higher education. And one in four women that amounted to 20% of women were found investing for travel. 

Other important findings 

  • 25% of women attributed the internet for encouraging them to invest.
  • 22% stated the convenience of investment apps was a major reason why they were investing. 
  • Surprisingly, a significant chunk of women admitted to not investing their money at all. 
  • 13% said that the fear of losing money kept them from taking the leap.
  • 32% lacked the funds to invest. 
  • 49% also blamed their lack of knowledge for not investing. 

Related: How to invest in stocks like a pro

Last words

Women in the higher income groups are juggling real estate, gold, cryptocurrencies, and more. But women in lower income groups are also catching up with mutual funds, shares, etc. In general, the attitude of female investors has drastically shifted towards high-risk high-reward investments. 

The survey disclosed some very useful insights into the investing patterns of women. While some women may not be investing at all, others have shown a positive change towards understanding and exploring the power of investments to ensure their financial security.  How homemakers can start their investment journey.