Women prefer equity funds, invest Rs 14,347 monthly, which is more than men

There has been a surge in females investing in stocks, and mutual funds post the Covid-19 pandemic. According to a survey conducted by FinEdge, a leading investment management company, the number of women investors have shot up 42 per cent in the last on year, and on average, women investors are saving 5 per cent more per month for their future goals compared to men. 
 

At least 30.82% of women prioritize retirement planning, second only to child education planning at 32.82%. This shift marks a new era where women independently plan for retirement or contribute equally to joint plans, ensuring financial resilience in unforeseen life events.

 

Eight Seven per cent  of women opt for equity-oriented SIP investments, slightly below men at 89.9%. 

The average age of women investors was found to be 38.67 years, which was around 2 years less than the average age for male investors, which came in at 40.34 years.

 Women also showed resilience in goal-based SIP investments, with a 19% lower stoppage rate, emphasizing their commitment to long-term financial goals, revealed the survey.

Women invest an average of Rs 14,347 monthly, slightly higher than men at Rs 13,704, challenging traditional assumptions.

Notably, women show a 5% higher monthly savings rate for future goals.

The survey was conducted by FinEdge in  August 2023, and the sample is comprised of 3,763 women clients of FinEdge from the age bracket of 23 to 76 years. 

In regional breakdown, the West and North zones had more female investor percentages at 34.54% and 32.98%, respectively. However, the East zone lagged with only 7.54% women investors.

"We are delighted to see more and more women leading the way and helming their family's financial plan. Temperamentally, women make better investors than men as they are less speculative, and more purpose driven. This makes them excellent long-term investors as their resilience allows them to benefit from compounding. We are certain that this trend will gather momentum in the next 3-5 years”, said Harsh Gahlaut, CEO, FinEdge.

Even the  latest AMFI data indicates that the number of women between 18 and 24 who invest in mutual funds has grown more than four times (62 per cent annualised growth) from December 2019 to December 2022.

"Similarly, the number of women investors in the 25-35 age bracket has doubled (grew at 33 per cent) over a similar period. In contrast, the older age groups have grown relatively slowly, at 11 per cent annualised growth," noted Value Research.

Anupam Garg of Value Research has some simple tips for first-time women investors: 

1. You can start an SIP with as less as Rs 500, and do your KYC and payments online. Stay regular. Don't lose tempo, get bored, or forget to keep investing. 
2. The next step in investment is to plan your goals. Your goals can be either short-term or long-term. For instance, retirement is a long-term goal, while buying a car can be a short-term goal. In a long-term horizon, you invest regularly for five years or more. A short-term investment horizon is one to three years.
3. A debt fund is a good choice if you're investing for a short-term goal. For any long-term goal, an equity fund is the best option. It balances your risk and returns well.
4. If you're a first-time investor in an equity fund, you will initially benefit from an aggressive-hybrid fund. It reduces your risk and lets you witness the value of systematic investing over two to three years.
5. Once you get a hang of the market, you can quickly move to pure equity funds, say a flexi-cap fund, for good returns.
6. Increase your SIP gradually. If you're a working woman, keep increasing your SIP as your earnings increase. If you're a homemaker, you can still invest an extra amount whenever you get cash gifts, inheritance etc.