The traditional social paradigm in urban India has been males are bread winners and women are home makers. Over the last several decades, this paradigm has been changing with increasing participation of women in the workforce. In the early 50s, the percentage of working women in urban female population was around 12% and it rose to around 16% in 2018-19 (source: NSSO). While the growth in percentage terms may seem modest, if we take into account the population growth over the last 7 decades, then it will be evident that many more women are working today compared to previous generations. The percentage of urban working women in middle income and upper income groups is still much compared to lower income groups, but this is expected to change in the future. With greater number of middle and upper income group women in the workforce, we are likely to see more women investing.
In the previous generations, a middle or upper income group urban woman going to work was seen more as matter of her personal choice rather than being driven by necessity. Now, more women choose to get married at a later age or remain single and therefore need to become financially independent. The number of single mothers is also rising; these women need to work to raise their kids. More and more married women are going to work so that the family can keep up with higher living expenses and improving lifestyles.
Even in families where women are not working, there is increasing involvement of women in personal finances of the household. This is a very encouraging development for the well being of families and our society as whole. However, we still have a long way to go as far as women involvement in investments is concerned. In the changing social conditions, it is very important for women to take an interest in financial education and start making financial decisions which ensures their and their families’ financial security and success in financial goals.
In our society there are several misconceptions about women and money. These misconceptions are largely a result of biases of a patriarchal society. These misconceptions have been perpetuated through several mediums and need to be corrected.
Women are as capable as men, if not more in saving and investing. However, there are some common investing mistakes which women should avoid.
The chart below shows the wealth through a monthly SIP of Rs 10,000 in Nifty 50 TRI over the last 20 years. With a cumulative investment of Rs 24 lakhs over 20 years, corpus of nearly Rs 1.1 crores (as on 31st March 2022).
Source: National Stock Exchange, Advisorkhoj Research. Period: 01.04.2003 to 31.03.2022. Disclaimer: Past performance may or may not be sustained in the future.
In India, many homemakers do not have much involvement in the family’s finances and investments. Whether you are working or not, your interest in your family’s financial security is high.
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