Shift In The Investment Habits Of Women

The Indian capital markets offer a diverse range of investments to cater to every investment goal. In India, the number of investors has grown significantly in the last few years, and there has been a shift towards women investors investing actively in the market. From 2017 to 2024, women investors' Assets Under Management (AUM) rose from
Rs. 98,000 crore to Rs. 7.5 trillion, and the number of women investors has also increased
to 7.9 million. Since the numbers are still growing, it is important to understand the changing investment habits of women in India.
 

This blog will help you learn about the changing investment habits of women in India and how they are contributing to the growth of the Indian market.

• Unlike before, the Indian capital markets are witnessing increased investments from women.
• Younger women are increasingly investing in stocks as they have more time to invest, which has increased their risk tolerance.
• Gold is witnessing the same demand from women as before, as women still prefer to invest in the metal through jewellery.
• Wealthier women are investing more in real estate to earn through rental income and price appreciation.

Women investors are known to invest more in low-risk investments as they want to steadily grow their income without much price fluctuations. A majority of women investors choose fixed-income instruments, such as fixed deposits, bonds, etc, to earn a predetermined interest income at regular intervals. The investments in fixed-income instruments help them significantly lower the overall portfolio risk and ensure regular returns. Furthermore, a portion of their allocated capital also goes towards investing in precious metals such as gold and silver. Since women prefer gold and silver jewellery to gold bars or coins, they invest in jewellery, which they can use personally and sell to make profits. However, there has been a slight shift in the investment habits of women.

The Indian capital markets have grown significantly, and more women are using their savings to invest in various investment instruments. However, due to the easily available financial literature, more women are investing to build their capital. Here are some factors included in the changing investment habits of women in India:
 

Younger women prefer stocks

It has been seen that younger women have shifted their investment style to include stocks for better returns. Stocks have the potential to offer the highest returns but come with high associated risks. Younger women between the age of 25-35 have realised that they have more time to invest and can earn higher returns by including stocks in their portfolios. A major portion of their allocated capital goes towards investing in various types of stocks based on the risk they come with and the returns they can potentially offer.
 

Gold maintains its demand

Gold is still one of the most preferred investments for women as it is low-risk and offers steady price appreciation. One of the reasons women invest in gold is its dual benefits. Women can buy gold jewellery and use it for personal purposes while the gold price appreciates, making the jewellery more valuable.
 

Real estate for wealthier women

Women who have more disposable income are choosing real estate as an investment. Women with incomes above Rs. 30 lakh per annum invest in real estate by buying flats and apartments, which they can rent out to earn from rental income. Since real estate prices are on the rise, they can also earn money by selling their real estate investments at a higher price.
 

Investing with set goals

A majority of women are investing to achieve their set goals through an extensive investment plan. Such women determine their goals, risk appetite and time horizon and identify investments based on these factors to ensure they achieve the goals successfully. The investment plan helps them easily adjust their investments and avoid heavy losses.

Women investors have become one of the most vital parts of the Indian capital markets as they have increased their investments and are investing actively. Younger women have a higher risk appetite as they have more time to invest and invest majorly in stocks. On the other hand, they are maintaining their investments in gold, which helps them earn through price appreciation. Women with high incomes are choosing real estate to ensure they earn steady returns through rental income. Now that you know the changing investment habits of women, you can better approach your future investments.