Women need to take charge of their financial lives: Three achievers speak

Three achievers from the financial services underline the importance of striving for financial independence on the occasion of International Women's Day, 2020

Radhika Gupta, CEO, Edelweiss Mutual Fund

“Be aspirational and make equities a part of your portfolio”

On what attracted her to the financial services: I studied engineering and finance at Wharton, which is one of the best finance schools in the world. I grew to love this industry over time. One of my first bosses said it is an industry where you are either making money or learning something new every day, and nobody makes money every day.

I spent four years on Wall Street, where I saw the highs of 2006-07, followed by the lows of 2008.

Next, I founded Forefront Capital in India, which was perhaps India’s first registered category-III fund. I was only 24 then. This industry is dynamic, constantly changing, open to new ideas, and it welcomes young people.

We sold Forefront to Edelweiss. Then I joined Edelweiss to keep running the same business. In 2016, Edelweiss Mutual Fund acquired the business of JP Morgan Mutual Fund and I was tasked with looking after the merger. I did not come from a mutual fund background. But I aspired to move from institutional asset management to retail, where India's potential lies. Edelweiss group gave me that opportunity. I was only 33 when I became CEO of Edelweiss Mutual Fund, and have just completed three years in this post.

On women being good at saving but not at investing: Unfortunately, there is a lot of truth in this stereotype. Our mothers saved a part of the money they got to manage their household expenses. Saving comes naturally to women. But investing is something a lot of them shy away from. I recently met employees of a large technology company. A lot of women said they would not like to get involved as they don't come from a finance background. It is a myth that you need to be a Warren Buffett, or a macho, aggressive male to handle your money. Just as you don't need to be a Michelin-starred chef to cook in your house, the same way you don't need to be a Warren Buffett to manage your own money. Women just need to manage their goals well.

On the positive changes she has observed: Younger women are gradually becoming more knowledgeable, and more aspirational. They want to take more risk. They work hard and want more from their money. This is very evident in younger women. I just did a session where I fielded a lot of questions about active versus passive funds, taking a loan to study abroad, fixed versus floating home loan rate, and so on. That is a positive sign.

On investing for long-term goals: First, you have to start saving and investing early. Second, don't outsource this job to the men in your life. Regardless of whether you work on not, stay involved. I cannot emphasise how important this is. If education gives women the freedom to make choices, then financial literacy will give you financial freedom. Outsourcing the job is not a choice.

And finally, be goal-oriented. Don't benchmark your performance against someone else's. So long as you are on track to achieve your goal, you are doing well. Be aspirational and make equities a part of your portfolio.

Mrin Agarwal, Financial educator and founder, Finsafe India

“Limit consumption. Save and invest to earn financial independence”

On what attracted her to financial planning: I did an MBA with specialisation in Finance. From college, I got placed at a wealth management firm. I love working with numbers.

On challenges women face in planning their finances: The social structure is such that women are conditioned to think money management lies in the male domain. What also stops women from investing is lack of knowledge and the fear of the unknown. Many of them get petrified at the thought of losing money. If a man invests in stocks and loses money, that is treated as par for the course. But when a woman loses money, that fact often gets highlighted within the family and becomes an issue.

However, there are also many women who are not interested in saving and investing so long as they have money to spend. I come across many who are doing very well in their careers but have no clue about their investments. They are happy to leave the task to their husbands. That, too, is the reality.

On the attitude of the younger generation: Unfortunately, matters are worse among the younger lot. They have very little interest in saving and investing. My company runs a programme on money management for women. Typically, it is women of above 30-35, who have had children, who are interested. The younger lot is on a big consumption spree. If you asked them about their financial goals, it first, to travel; second, to have a destination wedding; third, to own a Louis Vuitton bag or Jimmy Choo shoe, and so on.

On advice to younger women: I have advice both for women and their parents. Financial literacy is not taught at schools and colleges. In India, money is a taboo subject that parents don't discuss with their children, especially girls. Once you have started earning, that is economic independence. It is not financial independence. You need to make financial independence an important goal for your life. Spend within a limited amount, but start saving and investing early.

Shinjini Kumar, Country Business Manager, Global Consumer Bank, Citibank India

“Contribute to your team, and ask for fair remuneration”

On her journey in the financial sector: I did not make a conscious choice to become a banker. In fact, I was studying English Literature and Journalism. I was just a small-town girl who wanted to live in a city When I qualified to join the Reserve Bank of India, I got really excited about moving to Bangalore, more than anything else. It has been a huge learning opportunity since. I have been lucky to find great opportunities and mentors over the years—from central bank to consulting to a digital bank, and to now a multinational consumer bank. 

On how working women can get their due: For any woman entering the work place, my short advice always is ‘Don’t give up!’ My long advice is to stay focused on making a contribution and being relevant to your teams, your clients, and your organisation. Raise your hand for opportunities and step up and challenge yourself. Feel empowered to ask for what you consider fair and equitable because all good organisations value contribution and pay for performance. While in India, wage disparity based on gender is less egregious in the formal sector because of a large number of jobs being in the government/public sector, it still exists by way of subconscious bias. Sometimes it can be more obvious, especially in the semi-formal or informal economy, where a belief that a woman ‘needs’ less money than her male counterpart exists.  

On how to bounce back after a break: My advice to young mothers is that they should just sit back and soak in the phenomenal joy of being a mother. Nothing equals that and it is not worth letting anything tarnish that happiness. But you surely want to come back post-maternity and find the right balance between being a mother and being a working professional. So, do not forget that the time to think about this is pre-maternity. Invest in your relationships at work and at home. You should build stakeholders/promoters that will look out for you because you will be missed at work and they will support you when you come back. And at home, set the clear expectation that you will go back to work. You will not be able to do any of this when you are actually with the baby and trying to come back to work and deal with everything altogether. So, do it beforehand. 

Far fewer women than men take independent financial decisions 

• DSP Mutual Fund had carried out the DSP Winvestor Pulse 2019 Survey, which was published on May 30 last year.

• The survey was carried out by Nielsen.

• It covered 4,013 women and men spread across eight cities (four metros and for non-metros). 1,853 men and 2,160 women participated. They were aged between 25 and 60, were graduates, and had been working for at least two years. Here are the key findings:

• 33 per cent women take independent investment decisions compared to 64 per cent men.

• More husbands (33 per cent) encourage women to take independent decisions, compared to parents (24 per cent).

• 13 per cent women said they were forced to make their own investment decisions due to divorce or husband's death.

• Only 30 per cent of the women who make their own investment decisions did so because they themselves decided to.

• Women are slightly more inclined towards child-oriented goals than men.

• More men aim to start their own venture and plan for retirement than women.

• Men tend to dominate when it comes to decision making regarding investing or buying a car or house.

• Women, on the other hand, have a larger say in buying gold or jewellery, day-to-day household purchases, and purchase of durables.

• Only 12 per cent women said it was 100 per cent their decision to invest in market-based instruments (like stocks and equity mutual funds), compared to 31 per cent men.

• On the other hand, 28 per cent said it was entirely their decision to buy gold or jewellery, versus 17 per cent men.

• 39 per cent women said they invest first and adjust their monthly expenses accordingly, compared to 33 per cent men.

• Only 42 per cent women consulted a professional financial advisor, compared to 46 per cent men.