International Women’s Day: 6 financial aspects that impact women investors

This Women’s Day, we wanted to focus on different aspects of women’s economic life. We spoke to several women mutual fund distributors (MFDs) and SEBI registered investment advisors to share their experiences in dealing with women investors.

Variables that may influence women’s participation

Shifali Satsanji, Founder and CEO – Fund Vedabelieves that a variety of variables influence women’s participation in financial matters.

“Whether women are from tier 1/2 or other small cities, from conservative or modern households, working or non-working women, belonging to nuclear or joint families; “Whether she’s married or single will impact how she interacts with money, both her own money and the household finances as a whole,” she said.Also read: International Women’s Day: Here’s why you should invest as an investor, not as a woman

Men are hesitant to involve women in economic discussions

To address the current reluctance of men to involve their spouses in financial discussions, CEO Shairi Shah said: Purva Investmentsactively advocates for family participation in portfolio reviews and educational sessions.

“We emphasize the unpredictability highlighted by the coronavirus situation and emphasize the importance of family involvement. We also encourage children and spouses to participate in financial discussions. We want them to participate. They understand that they won’t understand anything on the first day, but over time they will understand.

Although not 100% successful, this approach led to positive changes. “Families are becoming more open to involving spouses and children,” she said.

Strategies to increase women’s participation

For women who have never been proactive about money or finances, it can be difficult to jump into investing. So a good place to start is to focus on their mindset and make sure they know about her husband’s investments and insurance.

The importance of information and will

Pratibha Girish, Founder Finwise Personal Finance Solutionsbelieves that women should let go of the idea that talking about money is evil.

“The first thing that’s really important is information. A woman needs to know where her husband has his investments, insurance policies, login details, contact details for advisers. The second thing is a will. If the husband dies intestate, that is, without a will, the property is divided according to religion. For Hindus, the property is divided equally between the wife, her children, and the mother. Having a will makes it easier for a woman to manage the household finances and take care of her children even when he is not around. Therefore, it is important for women to check whether their husband has made a will. is important,” Pratibha said.

2. Investor awareness program

Shairi Shah said she has been deeply involved in investor awareness programs to raise awareness among women investors.

“I have noticed that the level of comfort among women investors is surprisingly high. This reflects a positive change in mindset and a more open-minded attitude towards financial education. My approach is to simply promote financial products. Prioritize education and empowerment instead of making decisions. Women generally prefer to be thoroughly understood before making decisions, but focusing on education not only increased their confidence, but also Even hesitant customers are now discussing financial knowledge gaps,” Shairi said.

3. Strategies to help investors continue with SIP

Tejal Gandhi, CEO and Founder Money is important IndiaAccording to , millennials are very investment savvy and love investing in mutual funds through SIPs.

“We have seen many women investors quit SIPs when the market is not doing well. We ask investors to ultimately list three goals and invest in them for three years. After 3 years, we repeat this process. We are focused on achieving our long-term goals and ensuring that our investors stay invested for the long term. However, we are focused on achieving medium-term viable Having a strategy will help women investors execute their investment strategies and stay invested for the long term,” Tejal said.

4. Activities for housewives

Dilshad Bilimoria, Managing Director DILZER CONSULTANTS PRIVATE LIMITED.shared the common perceptions and realities surrounding housewives.

“There is a general perception that housewives are generally quiet and may be hesitant to voice their opinions. However, in my experience, these women have practical solutions and valuable resources when it comes to financial issues. Their understanding of budgeting, expense prioritization, and effective cash flow management is often underestimated, but they may have great ideas.” she said.

“We encourage housewives’ financial independence through small projects, such as tracking expenses and managing personal expenses in separate envelopes. We have created a modest systematic investment plan in their name ( By starting a SIP, they will be able to handle their finances confidently and independently. What’s more, we invite them to our office and teach them how to save, invest, differentiate between good and bad debt. We will discuss topics such as: We will guide you through webinars and other online resources to increase financial literacy. These initiatives will help empower housewives and spark interest in financial issues.” she added.Also read: International Women’s Day 2024: How can you claim control over your personal finances?

financial compatibility

Money is one of the main causes of conflict between couples. Therefore, it is important to ensure that both partners are financially compatible.

Bhuvana Sriram, Co-Founder, House of alpha investment advisor conducts an exercise called “Money Egg” with young couples to understand and deepen their financial compatibility.

“This exercise can help you understand where your partner’s financial beliefs stem from their childhood experiences, or whether they believe in spending or saving. If you’re in a relationship, both partners should We recommend doing this exercise together to see if your money values ​​align. We recommend doing this reflection to avoid criticism and blame. “It’s about understanding why your partner makes the money choices they make. This exercise is especially helpful for couples undergoing counseling or planning marriage,” Buvaner said.Also read: Women and Wealth: Strategies for Successful Long-Term Investing

How women in ultra-rich families and other family members think

Nita Shivdasani, Managing Director, Head of Heritage; Waterhole advisorshared that the number of female billionaires is increasing, but efforts are needed to empower women.

“India has more women billionaires and entrepreneurs than ever before. The number of women investors has tripled in the past decade. In UHNI families where women travel frequently, the rate of progress has increased. These women are now contributing not only to businesses but also to households, family businesses, and are becoming more involved in the financial decisions of their families,” Nita said.

“However, we are still in the very early stages of this transition and challenges remain. Lack of confidence and low financial literacy impede proactive financial management. We live in a society where the patriarchs of many families prevent women from taking control of their own finances. Hopefully, we get back on track and the next generation of women take control of their own finances. I want them to feel empowered,” she added.

Sraboni Haralalka, Co-Founder and Executive Director Woodhouse Capital Advisorssaid more families are involving spouses and daughters in business, and they are holding important positions.

“Traditional extended families believe in gifting large amounts of assets to their daughters at the time of marriage and only on specific social occasions. The man in the family used to be in charge. However, as families become smaller and more educated, parents are creating lifelong wealth for their daughters as well. Spouses and daughters too. They are involved in the business, often hold important positions, and enjoy ongoing profits. “I’ve seen it happen,” Slaboni said.

Principal Aarti Mohan; Aurion Advisors Among the wealthy, most women run successful businesses and charities, but with very few exceptions, they are rarely actively involved in managing their family’s financial assets. Stated.

“One of the main reasons is that, historically, even young girls have not seen their mothers play such a role, and also as part of their education to develop their level of knowledge and skills. Unfortunately, most schools/universities currently do not address this basic requirement. We can see that they are trying to inculcate and educate them on the basic concepts of family asset management.There is a growing trend of people becoming more conscious and practical about managing their family’s assets,” said Aarti.

divorce case

Most of the financial planners featured in this article said they see women reaching out to those who want to divorce.

Slaboni said family offices can lock in their assets and ensure wealth preservation, growth and regular income as needed on a long-term and sustainable basis.

Nita shared the importance of hiring professionals to ease the process.

“When a woman is going through a separation, it’s important to hire a financial consultant along with her legal advisor. During this emotionally nail-biting time, even the most amicable divorce requires smart, strategic financial advice.” Strategically planning alimony, how to divide community property, estimating assets, and post-divorce investment goals are important decisions that need to be backed by strategy rather than intuition. This is where family offices come in. Family offices ensure the existence of a governance structure, draft family bylaws, and keep families informed of their financial situation. Additionally, family offices ensure that the risk profile of their clients exists. We work with wealth advisors who help manage inheritances by guiding them in investing accordingly and advising them on estate and succession planning,” Nita said.

In conclusion, financial planners believe that, overall, women’s increased participation in the labor force and the availability of sources of income have made them more interested in financial matters and making independent financial decisions. I shared it.

However, there is still a long way to go.

Padmaja Choudhury is a freelance financial content writer. Contact her at padmaja@padmajachoudhury.com.