BackWhy are Indian women investing in stocks and mutual funds?
There has been a surge in females investing in stocks, and mutual funds post the Covid-19 pandemic
PremiumWomen have broken the glass ceiling in all spheres of life, from politics to education. However, Indian working women lag behind their male counterparts regarding investing and financial decision making. Only 7% of women in India invest independently through self-learning, as per Women & Money Power 2022 survey released by LXME, a financial platform for women. In association with Axis My India, the survey was carried out among 4,000 women across different age groups, life stages and occupations across metros, tier II and III cities.
However, there has been a surge in females investing in stocks, and mutual funds post the Covid-19 pandemic.
The Covid-19 pandemic and the subsequent lockdown forced Indians, especially women, to juggle their family responsibilities and work life. However, despite the economic downturn leading to job losses and pay cuts, one of the positives to emerge was the increasing participation of women in equity investments.
ClearTax saw significant growth in the number of female investors on its platform. For instance, around 24% of new investors on the ClearTax platform were females in the calendar year 2019. It increased to nearly 30% in the calendar year 2020 and retained similar figures for the calendar year 2021.
After the lockdown, many millennial women invested in equity funds and stocks to support their spouses in challenging economic conditions. Moreover, the widespread availability of financial apps and other technology tools helped women research and pick suitable mutual funds and stocks.
Women function as investors and not traders when it comes to stocks. Hence, many millennial women invested in fundamentally-strong stocks available at a massive discount during the lockdown.
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