Women in India might have broken many glass ceilings, but they still have miles to go before they can catch up with men in many spheres of life. Financial literacy is one of them. Economic empowerment, independent decision-making in money matters, and achieving financial gender equality are goalposts that women are nowhere in sight of yet.

 

Small wonder then that Indian working women lag behind their male counterparts when it comes to investing. The chasm is so wide that only one in five Indian investors is a woman and a mere 7% of women in India invest independently through self-learning.

 

These statistics are very telling — they reveal that despite all the talk about equal opportunities for men and women, gender pay parity, emphasis on diversity and inclusion, and so forth, women in India are not able to or are not willing to take charge of their financial destiny.

Despite more and more women joining the workforce, and not just in urban centres, it is obvious that they are being held back from taking financial decisions. And when they do, they start at a much later stage of their lives compared to men.

 

Why don’t women take to investment? 

What is striking about women in India is that even when they earn as much as their spouses, or even more, the decision to invest the money is left to men. Oftentimes, women themselves prefer to leave “the investment nuisance” to their spouses.

 

The reasons are varied, and the problem is deep-rooted. Many Indian women face cultural, economic, psychological, and physical restrictions that make it difficult for them to take financial decisions. The gender stereotypes, which reinforce the image of women being bad at numbers, math, and taking financial decisions, are to be blamed to some extent. The thinking that women can be “allowed” to work but serious matters like investment decisions are a man’s domain persists even in big cities.

 

As for women themselves, many shy away from investing for the fear of being blamed for any losses incurred or the absence of good returns. When the investments of their male counterparts run into losses, it is far more likely to be seen as either sheer bad luck or the result of unforeseen market forces. Women are not likely to be let off that easily. Chances are family members would blame them for having taken wrong decisions. So, no wonder women tend to leave investments to their spouses!

 

Implications of women not participating in the investment process

The lack of women’s participation in financial matters is not just their problem; it is everybody’s problem and loss. It indicates lost investment opportunities and, consequently, loss of additional income that could have benefitted the entire family. At the macro level, it is a loss to the nation, as wealth-creating opportunities are lost. It would not be an exaggeration to say that women not participating in the investment process is a hindrance to the economic progress of the country.

 

The pressing need of the hour is to increase the financial awareness levels of women and persuade them to take an interest in financial planning and wealth creation. Changing the mindset of both men and women might take a lot of doing but short-term measures, such as providing incentives to women to take control of their financial journey, must be undertaken immediately.

 

https://www.businesstoday.in/latest/corporate/story/gender-disparity-out-of-5-investors-in-india-just-1-is-a-woman-study-shows-325123-2022-03-08