Indian women investors are smart, savvy, and determined when it comes to investing their hard-earned money, according to an ETMONEY report.
Whether you want to invest money for learning new skills, taking a holiday, planning a wedding, or just growing your overall wealth, investing money wisely is unarguably one of the best tools for a woman to achieve financial independence.
Now, a new report by ETMONEY has shown that Indian women investors are smart, savvy, and determined when it comes to investing their hard-earned money.
In this article on investing for women, you’ll see how Indian women are learning how to invest smartly and how to invest money for better returns.
ETMONEY ‘Making India #WealthyHER’ Report Findings
According to a recent report by ETMONEY called “Making India #WealthyHER” Indian women investors are savvy and smart investors who know how to invest and make money.
Here are some of the findings from the report:
1. Women investors are consistently earning higher returns
The ETMONEY report showed that women investors are earning better returns than men across all time frames and the fall they had was less than the one men incurred.
Money invested by women investors has consistently earned higher returns than male investors, from 2017 to 2020. XIRR stands for Extended Internal Rate of Return and is a term that reflects your actual return on investments.
2. Money invested by women has increased
The ETMONEY report also shows a massive increase in money invested by women across all age groups in the last 4 years. So more and more women are investing money in India.
3. More non-metro women are investing in mutual funds
The ETMONEY report also found that investing in Mutual Funds is no longer a metro phenomenon for women, as non-metro women are also investing.
The contribution of women from non-metro cities in Mutual Funds is increasing, and women investors in cities like Chandigarh, Vadodara, Bhopal, Indore and Dehradun, are leading the way. In Chandigarh, 20% of the total investors are women.
4. Change in annual investment amount by women
Another finding was the change in the annual investment amount by women. One of the key attributes to investing success is to take advantage of market crashes, and if markets run up too much, book profits or lower your investment amount.
Women have done both. From 2017 to 2018, the change was +40%. When the markets ran up and became expensive in 2019, women, while increasing their investment amount, reduced the increase so the change was 27%.
And when markets corrected in 2020, women upped the investment amount and invested 50% more than what they invested in 2019.
5. Women are smarter when it comes to tax-saving
The data on the share of tax-saving investments in total investments for women vs male investors have shown that women are smarter when it comes to tax-saving.
They are putting more money in ELSS Funds, which help you save taxes and grow money together.
6. Women are being smart about how they allocate investments
The Average Equity Debt allocation for women in different age groups shows that women are dividing money between equity (high risk) and non-equity (relatively lesser risk) as per their age.
This shows that women are being smart about how they invest and allocate their investments.
7. Women are more resolute investors
While both women and men use Systematic Investment Plans (SIP) to invest, the percentage of women who continue investing is higher by 12 to 14% and there is at least 11 to 12% higher SIP Retention for women who invest in Systematic Investment Plans (SIPs).
Women are more likely to continue their SIPs once they start investing, are far more resolute investors and don’t give up investing once they start.
Get money-wise and investment savvy with ETMONEY’s initiative Making India #WealthyHER.