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In a country like India, where women have made great strides in various professional fields, the investment sector remains fraught with unique challenges. Gender equality has come to the forefront, especially as one of the key aspects of a growing economy. Despite the increasing participation of women in the economy, be it investing in markets or funding start-ups, women face several obstacles that prevent them from realizing their full potential.
Experts believe one of the main challenges is rooted in culture and societal norms. In traditional systems, women tend to prioritize household responsibilities over economic aspirations. But India’s socio-economic landscape is changing, with more than 250 million Indians lifting out of poverty and joining the new middle class, a demographic that Indian Prime Minister Narenda Modi has described as “the driving force behind India’s aspirations.”
According to Kantar, a global marketing data and analytics company, this middle class is projected to reach 41% of the population by 2031. With a steady rise in dual-income households across major and second-tier cities, this may become a fact of life in the near future.
Equality in the market
FinEdge, an Indian tech-focused investment management firm, recently announced the launch of a campaign called #SheInvestsBest, which aims to raise awareness among women investors and encourage them to become financially independent.
The firm said the proportion of women investors is increasing in India as more women join the workforce, bringing employment equality and increasing the possibility of leveraging their expertise to independently manage their investments.
A recent survey conducted by FinEdge revealed that the average investment amount for female investors is INR 467,000 compared to approximately INR 408,000 for male investors. The survey also uncovered indicators such as women setting higher personal goals with regards to retirement and their children’s education.
More importantly, the percentage of women investing in the stock market will increase from 25.68% in 2020 to 46.15% in 2024, with over 67% of women keeping their investments in their portfolios for more than three years.
“We believe that empowering women with financial knowledge and resources is critical to building a more inclusive and resilient investment environment,” said Harsh Gahlaut, CEO of FinEdge.
Radhika Gupta, Managing Director & CEO, Edelweiss Mutual Fund, spoke about the importance of financial independence for women and said that these initiatives are an important step towards empowering women with confidence and control over their own financial future.
“By providing expert guidance and cultivating financial literacy, we can inspire more women to embark on their investing journey, achieve their financial goals, and ultimately contribute to a more inclusive and diverse financial environment,” says Radhika Gupta.
Equality in the fundraising scene
On the government side, there have been several initiatives to promote gender inclusivity, especially in business. For instance, NITI Aayog has launched a platform called Women Entrepreneurs Platform (WEP), an integrated access portal that brings together various stakeholders to offer services like financial assistance, capacity building, mentorship, etc., with an aim to make the startup ecosystem a better place for women to pursue their entrepreneurial dreams.
Despite various efforts, the current situation is still not the best for women investors on many levels. Seema Chaturvedi, Founder, Sponsor and Managing Partner at AWE Funds, believes it is important to not only support women founders but also promote gender equality across ownership, leadership and supply chains.
AWE Foundation is a nonprofit organization dedicated to empowering women economically through education, market access, policy, advocacy and community building.
India’s leading gender smart fund is setting new goals for companies, showing them that gender inclusivity is a strategic business advantage, not just charity. For example, AWE Funds’ portfolio companies such as Freshokartz have supported 250,000 women, and by focusing on underserved consumer segments, companies are opening up new markets and improving supply chain efficiencies.
“This approach has resulted in increased valuations, improved market penetration and demonstrated the tangible business benefits of a gender-inclusive strategy,” said Seema Chaturvedi, founder, sponsor and managing partner at AWE Funds.
