This progress is evident in corporate leadership, where women in India make up 21% of directors of the TOP 200 companies, an increase from 19% in 2023, according to a Russell Reynolds Associates study—a trend that is no longer just driven by regulatory requirements. This shift is not limited to boardrooms; women are making significant strides across traditionally male-dominated fields, reflecting a broader transformation in both corporate and economic leadership.
Despite these strides, barriers persist—whether in accessing venture capital, financial education, achieving pay equity, or overcoming the gender wealth gap. The question is no longer whether women are taking charge of their wealth—they already are. The real challenge is whether the financial industry is adapting fast enough to meet their evolving needs.
This International Women’s Day, let’s debunk 3 persistent myths about women’s investment behaviors, to better understand their financial strategies and the systemic shifts needed to support them.
Myth #1: Women Are Risk-Averse Investors
Reality: Women Are Risk-Aware—And That is Why They Often Outperform
The stereotype that women shy away from risk in investing is misleading; women don’t avoid risk, they assess it differently. Their approach to risk is shaped by structural, psychological, and experiential factors such as longer life expectancy, career breaks, and caregiving responsibilities. These life transitions and their financial uncertainty make women risk aware, making long-term financial security a critical focus for women investors and leading women to be more deliberate and goal-oriented with their financial strategies. Risk awareness is, in fact, a critical trait for investors. Hence, it may not be surprising that female investors outperform men by an average of 0.4% annually (according to a study by Fidelity Investments). This stems from several factors: lower trading frequency, staying invested through market fluctuations, and prioritizing long-term financial growth. In other words, the outperformance is a result of their strategic risk management and nuanced risk awareness. If data points strongly in another direction, why does this myth still persist?
One reason is that traditional financial education and advisory models have seldom focused on women, steering them toward “safe”, low-yield products, perpetuating the cycle. The real issue isn’t risk aversion—it’s a financial system that hasn’t fully adapted to their strategic approach to wealth.
Myth #2: Women Don’t Engage in Investment Decisions
Reality: Women Are Taking Control of Their Wealth, But Structural Barriers Persist
The notion that women are passive financial participants, relying on spouses or family members for investment decisions, is increasingly becoming outdated. A study by AMFI reveals that women investors now account for over 25% of individual investors and 33% of individual AUM in India’s mutual fund industry. Their share of mutual fund assets has grown from 15% in 2017 to nearly 21% in 2023, with an even sharper rise in smaller cities (B-30 cities), from 17% to 28%. This signals an unambiguous transformation from being passive wealth holders to active financial decision-makers.
Yet, funding disparities persist. According to a Pitchbook report, while deals for women-led startups increased from 5.6% in 2019 to 7.1% in 2023, the share of total capital dropped from 2.6% to 2.1%. Though more women-led startups are securing deals, they receive disproportionately less funding compared to male-led companies.
Myth #3: Women Stick to ‘Safe’ Asset Classes
Reality: Women Are Diversifying Their Portfolios—But Historical Preferences Still Play a Role
Historically, gold has been an important financial asset for women, acting as a financial safety net. But now, investment patterns are evolving. The National Stock Exchange (NSE) reported that women investors make up to 22% of the Indian stock market. Similarly, a report by State
Bank of India (SBI) found that women form 25% of new entrants in the Indian stock market.
Beyond public markets, women are making strategic moves in alternative asset classes. The rise of female investors on Shark Tank India, like Namita Thapar, Vineeta Singh, and Radhika Gupta, highlight this influence. Female-led angel investment networks are backing high-growth startups, many founded by women, fostering a more inclusive entrepreneurial ecosystem. In the venture capital space, more women are stepping into leadership roles as Limited Partners (LPs) in funds, directing capital into sectors they believe in, such as healthcare, fintech, and sustainable businesses.
The Future of Women in Wealth
The outdated myths about women and investing are dissipating, but progress remains uneven. Women are proving to be strong, strategic investors, yet they continue to face structural barriers, funding challenges, and biases within the financial industry.
Financial institutions, venture capital firms and the entire industry at large must actively adapt to ensure that women’s financial power is recognized and integrated at every level. This is not just about inclusion—it’s about transforming financial markets to reflect the realities of women as wealth creators, investors, and economic leaders.
(The author is Managing Director & Head of HERitage, Waterfield Advisors)
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