For Vrinda, 36, her go-to for financial advice was a group of colleagues known to be smart investors. Once a strong advocate of them, she now cautions others against such groups.
Like many women, Vrinda had never learnt about money management and had been kept out of financial conversations at home, with her partner preferring to keep family finances under his control.
The constant investment-related chatter at work eventually prompted her to start investing. The group was investing in cryptocurrencies at the time. Unfortunately, the platform through which she invested suffered a hacking incident and she lost her capital.
Burnt by the experience, she stayed away for a while, only to return to investing through high-yield corporate bonds last year. It was only after hearing about a recent corporate bond default that she researched further and understood the risks involved.
Vrinda’s story is not unusual. Many women quietly navigate similar financial challenges, often relying on familiar circles for financial advice due to lack of knowledge and trusted sources to check with on their queries.
While online communities offer easy access to information, they are often filled with unverified opinions and trend-driven recommendations rather than advice suited to individual financial needs. They often focus on small things which do not really make a big impact overall.
For instance, offering small discounts on services or encouraging ₹10-a-day savings won't help create long-term wealth. Past experience with phone groups has also been poor—many lack verification and transparency, with some even operating like Ponzi schemes that eventually defraud participants. Social media is filled with one to two minute content, which is mostly tips and not long-term wealth-building advice.
Women also often fall prey to promises of high, guaranteed returns investments such as ULIPs, corporate bonds, fractional property investments—or unregulated schemes like gold savings plans from jewellery shops or quick-return trading strategies. Much of this is driven by the urge to catch up on investing, or to prove that they can generate good returns. But investing rarely rewards haste or comparison.
The real need is to step back and approach decisions rationally—understand the product, assess risks and align investments with financial goals. Instead of reacting to noise or pressure, investors must pause, ask questions, verify sources and rely on sound financial principles.
Women can build smaller support circles with a few peers committed to learning and making informed decisions. Such circles can be spaces to discuss ideas, share resources and question investment opportunities before acting on them. Equally important is finding a credible financial advisor to work with this group.
For years, many women have been accustomed to signing financial documents without fully understanding them, largely because they were not actively included in financial decision-making. This is especially true of loan documents, which can place legal liability on the woman as a co-borrower. Even in investments, women sometimes sign up for products without questioning whether they align with their needs.
Taking the time to read, ask questions and fully understand financial documents should not be seen as a dreary task, but as a mandatory step in financial decision-making.
Women are also frequent targets of digital financial fraud due to lower familiarity with financial products, digital platforms and fraud tactics. They become targets through several common channels that appear legitimate at first glance.
Unknown links sent through messages or social media often promise investment opportunities, rewards or urgent account updates. Another tactic involves messages promising instant loan approvals or exclusive deals, prompting individuals to share sensitive information such as card details, OTPs, etc.
Scammers may also impersonate bank or regulatory officials, claiming to help resolve an issue or update KYC details.
To stay safe from digital frauds, women can follow three simple mantras: avoid clicking on unknown links or responding to suspicious calls; never share personal or financial information; and limit publicly available personal details on social media.
Vrinda’s story shows that the most powerful financial decision a woman can make is to take ownership of her choices. This Women’s Day, may women move from merely signing to questioning.
Mrin Agarwal is a financial educator, founder of Finsafe India and co-founder at Womantra.