Women make disciplined, long-term investment plans for goals: Study

41% of New Investors at FinEdge in 2023 Were Women, 71% of women investors stay invested for over five years

There has been a significant increase in financial awareness and independence among women, said a study by FinEdge, an investment management company.

The study was conducted among the company’s 4,351 female clients aged 23 to 64. As many as 41 per cent of new investors at FinEdge were women last year, marking a substantial increase in financial awareness and independence, it said.

"It is evident from the study that women are not only investing more but they are also investing smarter," said Harsh Gahlaut, chief executive officer of FinEdge. “The study highlights women's steps towards securing their financial future and achieving long-term success.”

Women make goal-based investments, with retirement and children's education as their focus. As many as 44 per cent of women prioritise retirement planning, while 35 per cent earmark funds for their children's education. As many as 27 per cent prioritise children's marriage in their investment, showcasing the multifaceted financial planning approach adopted by women.

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The study said that 39.3 per cent of women start investing in their twenties and 41 per cent commence in their thirties. This early start underscores the significance of investing awareness among young women, setting a solid foundation for achieving long-term financial goals.

As many as 71 per cent of women investors at FinEdge continued investments for more than five years. The focus on long-term goals in a volatile market reflects a disciplined investment mindset, driven by purpose rather than impulsive decisions influenced by market noise.

Women clients had an average systematic investment plan (SIP) amount of Rs 4,483, surpassing their male counterparts who averaged Rs 3,992. This disciplined approach underscores women's dedication to realising important financial milestones in their lives.

In addition to higher average monthly investments, women allocate more funds towards their goals, with an average monthly SIP investment of Rs. 14,347, compared to Rs. 13,704 for men. The trend highlighting women's proactive stance towards securing their financial future, said the study.