Women & Finance: Increasing Female Participation in Investing and Wealth Creation

by KarNivesh | 19 September, 2025

The financial landscape in India is undergoing a historic transformation as women step more actively into the investment space, challenging age-old stereotypes and reshaping the contours of wealth creation. This shift is not just a matter of numbers—it reflects a broader change in how financial independence and empowerment are being defined in modern India. Women’s Assets Under Management (AUM) in mutual funds have more than doubled from ₹4.59 lakh crore in March 2019 to ₹11.25 lakh crore in March 2024. During the same period, their representation among unique investors increased from 20.5% to 25.7%. These figures make it clear that women are no longer passive participants but active contributors, bringing discipline, strategy, and long-term thinking into the world of finance.

Rising Trends in Women’s Investment Participation

According to the Association of Mutual Funds in India (AMFI), women now account for nearly one in every four mutual fund investors, representing 24.2% of the investor base as of December 2024. Research from PhonePe Wealth, which studied 100,000 women investors, shows striking differences in behavior compared to men. Women’s average Systematic Investment Plan (SIP) transaction value is 22% higher than men’s, while their lump-sum investments are 45% greater. Almost 90% of women begin their investment journey through SIPs, favoring disciplined and steady wealth creation, with an average SIP of ₹1,300.

What is even more encouraging is the geographical spread. Nearly 72% of women investors come from smaller towns and cities (B30), reflecting a democratization of investment beyond urban centers. States like Goa, Mizoram, Chandigarh, Delhi, and Sikkim are leading with women’s participation rates between 30–32%, far higher than the national average.

Growth of Women's Participation in Indian Mutual Funds (2019-2024)

Shifting Portfolio Preferences

Women investors are increasingly shifting towards equity-oriented funds, with allocations rising from 43.3% in 2019 to 63.7% in 2024. Their participation in debt funds, once a conservative preference, dropped from 22.6% to 10.7% in the same period. The adoption of direct investment plans has also risen from 14.20% to 20.33%, especially among younger women in the 25–44 age group. These changes highlight growing financial confidence and autonomy among women.

Women's Investment Allocation Preferences in India

Barriers Still Holding Women Back

Despite the positive trends, structural, cultural, and psychological barriers continue to limit women’s full participation. Globally, women earn around 83 paise for every ₹1 men earn. In India, financial independence is still concentrated among women above 45 years of age or those earning more than ₹40 lakh annually. Traditional household norms often keep men as primary decision-makers, limiting women’s exposure to financial management.

Financial literacy is another key barrier. Studies show that women score 0.7 standard deviations lower than men on financial literacy indices. Importantly, about 30% of this gap stems not from lack of knowledge but from lack of confidence—many women choose “don’t know” even when they have the right answers. Women also display higher risk aversion, especially in lower income groups, which sometimes restricts them from pursuing higher-return opportunities. Limited access to digital banking in rural areas, lower smartphone penetration, and frequent career breaks due to caregiving responsibilities add to the challenges.

Key Barriers to Women's Financial Participation by Impact Score

Strategies to Boost Women’s Financial Participation

One of the strongest tools for change is financial literacy. Programs like SEWA’s Financial Inclusion initiatives and the RBI-recognized Diksha Financial Literacy Programme have empowered millions of women with training on saving, budgeting, debt management, and digital banking. Platforms like Lxme are also creating women-focused content in simple language, ensuring financial knowledge is not intimidating but accessible.

Technology has played a crucial role in reducing barriers. Mobile-based platforms such as Zerodha have contributed to women’s share of market participation rising from 2–3% to nearly 30% over the past decade. Fintechs are increasingly tailoring apps to women’s needs, combining educational resources, simplified interfaces, and community support.

Policy support has also been strong. SEBI offers additional incentives to distributors who bring new women investors, capped at 1% of the first investment or SIP for a year, with a maximum of ₹2,000 per investor. Government schemes like Jan Dhan Yojana, Self-Help Groups, and NITI Aayog’s Women Entrepreneurship Platform have created the necessary infrastructure for women’s economic empowerment.

The Economic Impact of Women Investors

The economic effects of women’s financial participation extend beyond personal wealth creation. Between March 2019 and March 2024, women’s SIP AUM surged by 319.3%, growing from ₹77,000 crore to ₹3.24 lakh crore. Projections suggest that if women make up over half of the new workforce by 2030, India could achieve GDP growth of 8%. With the female labor force participation rate already increasing from 21% in 2001 to 37% in 2023, the link between women’s economic activity and national growth is undeniable.

Globally, the potential is staggering. If women invested at the same rate as men, an additional $3.22 trillion—around ₹2.67 crore crore—would flow into markets. Moreover, around $1.87 trillion (₹1.55 crore crore) could go into responsible and impact investing, which women are more inclined toward. In India, 63% of women aspire to become entrepreneurs, suggesting strong momentum toward wealth creation and independence.

Building Confidence and Social Support

Confidence building remains a critical step. Initiatives like “Invest in Girls” have shown that mentorship and peer learning can double women’s confidence in financial matters. In India, Self-Help Groups and women-focused investment communities provide safe spaces for women to discuss and learn, breaking cultural taboos around money.

Family support is equally important. Today, nearly half of women investors manage accounts independently, while others still depend on family members. This is improving with changing household dynamics, longer female life expectancy, and rising divorce rates, which necessitate financial independence. The role modeling effect is powerful too—women who manage finances inspire younger generations to pursue financial autonomy.

Looking Ahead: The Future of Women in Finance

The future is promising. Digital transformation is steadily lowering entry barriers, while ESG and impact investing perfectly align with women’s values-driven approach. Regulatory and policy measures are evolving, and targeted workplace financial wellness programs are helping address women’s unique challenges such as career breaks and longer retirement needs.

Financial institutions must move beyond creating generic products to building communities, offering continuous education, and providing personalized advisory services. Policymakers must scale up successful financial literacy programs, while schools and universities should introduce gender-focused financial education early on. Employers too can play a role through workplace wellness and retirement planning programs.

The story of women in finance is no longer about breaking into a male-dominated space—it is about reshaping it altogether. With women’s mutual fund AUM already more than doubling in five years, their increasing participation is creating not just wealth for individuals but a more inclusive, sustainable, and resilient financial ecosystem for India. As women continue to invest with discipline, long-term vision, and social consciousness, they are redefining the very meaning of wealth creation in the 21st century.