A New Era of Female Investors: Shaping India's Financial Future Despite the growing economic participation of women, be it investing in the market or funding for entrepreneurship, women face several obstacles that hinder their full potential.

In a country like India where women are making great strides across various professional fields, the realm of investing remains fraught with unique challenges. Gender equality has been at the fore, especially as one of the crucial aspects of a growing economy. Despite the growing economic participation of women, be it investing in the market or funding for entrepreneurship, women face several obstacles that hinder their full potential.

Experts think that one of the primary challenges is rooted in cultural and societal norms. Traditional setups often prioritize women for household responsibilities over financial aspirations. However, the socio-economic landscape of India is changing with over 250 Million citizens having transitioned out of poverty and joining the neo-middle class, a demographic that the country's Prime Minister Narenda Modi described as the 'powerhouse of Indian aspirations'.

According to Kantar, a global marketing data and analytics firm it is projected that this very middle class is expected to reach 41% of its population by 2031. With a steady rise in double-income families across metro and tier-2 cities, this might turn out to be a fact in the near future.

Equality in the market

FinEdge, an Indian tech-focused investment management company recently announced the launch of a campaign, aimed at creating awareness and financial empowerment among women investors called #SheInvestsBest.

According to the firm, India has a growing segment of women investors as more join the workforce bringing about employment equality and thus, the possibility of managing their investments independently with access to expertise.

FinEdge recently conducted a study that revealed the average investment size of women investors is INR 4.67 Lakhs while male investors averaged approximately INR 4.08 Lakhs. Metrics such as women setting higher individual goals for retirement and child education also was revealed in the study.

More importantly, women investing in the stock market have increased from 25.68% in 2020 to 46.15% in 2024 with over 67% of women staying invested within their portfolio for three years or more.

"We believe that empowering women with financial knowledge and resources is crucial for building a more inclusive and resilient investment landscape," says Harsh Gahlaut, CEO, FinEdge.

Addressing the importance of women's financial independence, Radhika Gupta, Managing Director and CEO of Edelweiss Mutual Fund opines that initiatives are significant steps towards empowering women to take control of their financial future with confidence.

"By providing expert guidance and fostering financial literacy, we can inspire more women to embark on their investment journey, achieve their financial goals, and ultimately, contribute to a more inclusive and diverse financial landscape," says Radhika Gupta.

Parity in the funding scene

There have been several government initiatives from the government's side to foster gender inclusivity, especially in business. For example, NITI Aayog has launched a platform called the Women Entrepreneurship Platform (WEP), a unified access portal that brings together various stakeholders to offer services such as funding support, capacity building, and mentorship with an aim to make the startup ecosystem, a better place for women to pursue their entrepreneurial aspirations.

Despite the various initiatives, the current landscape is still not clicking at its best for female investors across multiple levels. Seema Chaturvedi, Founder, Sponsor, and Managing Partner at AWE Funds opines that it is not just about backing female founders but advancing gender equity across ownership, leadership, and supply chains.

AWE Foundation, is a nonprofit aimed at empowering women economically through education, market access, policy, advocacy, and community building.

Leading gender-smart funds in India are setting new targets for companies, showing that gender inclusivity is a strategic business advantage rather than charity. For instance, AWE Funds' portfolio companies like Freshokartz have helped 250,000 women, and by focusing on underserved consumer populations, businesses are opening new markets and improving supply chain efficiency.

"This approach has led to higher valuations and better market penetration, demonstrating the tangible business benefits of a gender-inclusive strategy," says Seema Chaturvedi, Founder, Sponsor & Managing Partner, AWE Funds.