The Gender Investment Gap in India: A Problem of Access, Not Ability: Part 2

Investment Risks: What Holds Women Back?

Women face multiple barriers that limit their ability to invest effectively and build wealth. These barriers stem from societal norms, structural inequalities and biases within the financial ecosystem. There are many reasons that hold women back from investing and creating wealth. Some of them are listed below:

✔ Exclusion from Financial Decision-Making:

Women continue to be under-represented in financial decision-making, both at the household and institutional levels.

The investment products and policies are often designed without fully considering women’s unique spending habits.
The financial sector remains male-dominated with investment products, advice (and advisors) and policies often designed without considering women’s financial needs.
These reasons directly or indirectly lead to women being less likely to receive tailored guidance aligning to their long term financial goals.

✔ The Double Burden of Income Disparity and Career Breaks:

Women earn less than men due to wage gaps and are more likely to take career breaks for caregiving. This directly impacts their ability to contribute consistently to invest and accumulate wealth over time. The compounding effect of lower earnings and interrupted careers contributes to smaller retirement savings.

✔ Systemic Bias in Investment Recommendations:

Many financial advisors, consciously or unconsciously, steer women toward low-risk options like fixed deposits and gold rather than high-growth assets such as equities and mutual funds.1 This not only reinforces the cycle of under-investment but also prevents women from leveraging the full potential of their earnings.

✔ Social Stigma Against Women Making Bold Financial Decisions:

Women who take strategic, high-risk investment decisions often face criticism, discouraging them from fully engaging in financial markets. This societal bias further exacerbates the low level of confidence in their own financial abilities, even when data shows that women are often better long-term investors.

These systemic barriers do not just restrict women’s investment opportunities—they actively widen the wealth gap over time.

Bridging the Gender Investment Gap

Bridging this divide requires dismantling biases and stereotypes, promoting financial literacy and ensuring that investment advice and products are designed with financial aspirations of women in mind.

1. Integrating Financial Literacy into Education

Financial literacy programmes should be introduced in schools and colleges, covering:

Budgeting
Saving and investing
Understanding credit and managing debt

Introducing these concepts early on can facilitate the development of healthy financial habits and empower women to take charge of their finances.

2. Workplace Investment Awareness Programmes

Employers can actively promote investment awareness programmes for female and other employees, helping them:

Understand retirement planning
Leverage employee stock ownership plans (ESOPs)
Explore mutual funds, ETFs and SIPs

3. Creating More Women-Focused Financial Advisors

Women investors often feel underserved in traditional investment advisory models. More women financial advisors can help address this gap by providing relatable guidance and investment solutions tailored to women’s needs. The gender investment gap in India is not about ability—it’s about access. Women are equally capable of making sound investment decisions, but lack of financial literacy, societal norms and limited representation in financial markets create barriers.

By integrating financial education, creating inclusive investment platforms and addressing societal conditioning, India can work towards a more equitable financial future where women are active participants in wealth creation, not just passive savers.

1 “Where Might Biases Creep Into Investment Advice?” Morningstar, Inc., 28 Mar. 2019, https://www.morningstar.com/financialadvisors/where-might-biases-creep-into-investment-advice.