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Empowering Women Through Inclusive Financial Planning

In India, the investment landscape is undergoing a significant transformation, with women increasingly asserting their presence as key players in securing financial stability and independence. This paradigm shift defies traditional stereotypes, with modern Indian women embracing diverse investment avenues, empowered by technological advancements and a growing awareness of financial opportunities.

The Shifting Investment Landscape

Recent findings from a joint study by DBS Bank India and CRISIL shed light on the evolving investment behaviour among earning women in India’s metros. The study revealed a prevalent inclination towards risk-averse investment options, with 51 per cent of their investments parked in fixed deposits (FD) and savings accounts. 

Our internal analysis at Stable Money reveals an escalating engagement of women in the investment arena, underscoring not just their participation but their significant contribution and active involvement. With women constituting 19.53% of registered users, 28.71% of those engaging in transactions, and accounting for 32.48% of the total Asset Under Management (AUM), it’s clear they are making substantial impacts. Notably, the Average Transaction Size (ATS) for women is 19.45% higher than that of men, highlighting their greater financial commitment. 

Moreover, the month-on-month trends paint a picture of robust growth, with the percentage of AUM from women steadily rising from 21.65% in August 2023 to 36.62% in January 2024, and the percentage of monthly transacting women growing from 20.52% in August 2023 to 33.01% in January 2024. This data highlights the dynamic and growing role of women in the financial landscape and emphasises the critical importance of investment as a tool for women’s financial empowerment and wealth creation.

Challenges on the Path to Financial Empowerment

Despite positive economic trends, women encounter significant obstacles on the path to financial empowerment. Enhancing financial literacy and accessibility to tailored financial planning services are imperative. By empowering women with knowledge and support, we can bridge the gender gap in wealth accumulation and ensure economic equality. 

Unlocking Economic Potential: The Imperative of Inclusive Financial Planning for Women

Inclusive financial planning for women is not just ethically sound but strategically vital for sustained economic growth. Equipping women with financial knowledge and tools not only enhances their personal stability but also strengthens their ability to navigate life’s challenges resiliently while contributing significantly to the broader economy through active participation in capital markets. To achieve true empowerment, a multifaceted approach is essential, encompassing bridging the financial literacy gap, providing personalized financial services, and encouraging a shift from risk aversion to informed diversification. 

Authored Article by Saurabh Jain, Co-founder, Stable Money