The financial transformation in India is on the rise, with more women entering the investment ecosystem than ever before. Yet, despite rising participation, a significant retirement wealth gap of nearly 40 percent remains between men and women, highlighting deep structural and behavioral differences in how the two groups build long-term financial security.
Speaking with Zee Business, financial experts Mrin Aggarwal, CEO of Finsafe, and Pratibha Girish, Founder, Finwise Personal Finance Services, understood the emerging trends in women’s investment behavior and the urgent need for strong financial planning among women.
Participation is increasing, but gap persists
According to Mrin Aggarwal, there has been a clear positive change in the investment behavior of women in the last few years. “Women have started investing more, especially in the last two to three years,” she said, adding that financial independence has become a major motivation rather than just family security.
Citing statistics, he pointed out that almost one-fourth of mutual fund folios now belong to women investors, and women are increasingly joining the conversation around wealth creation and financial independence.
However, they also highlight an important societal concern: Financial security for women can become increasingly vulnerable during life disruptions such as divorce, widowhood, or career breaks, often leaving them economically vulnerable.
Change in investment behavior of women
Pratibha Girish emphasized that women investors are gradually moving away from traditional saving habits. “We are seeing a clear shift from conservative fixed-income preferences to equity-oriented investments,” he said.
He said that young women investors are increasingly opting for equity mutual funds while reducing investments in debt instruments. Over the last five years, women’s allocation to credit has declined significantly, while equity participation has increased rapidly.
Key changes highlighted include:
- Loan allocation reduced from 30 percent to 9 percent
- Equity allocation increased from 40 percent to 65 percent
- The total portfolio now comprises about 85 per cent equity and hybrid investments
Despite this change, she stressed that women are still lagging behind in wealth accumulation due to lower income levels, career breaks and caregiving responsibilities.
Awareness vs actual investment
A detailed report discussed during the conversation – “Unlocking Her Wealth” by EY and LXME – revealed a significant gap between awareness and action.
Aggarwal points out that while awareness is growing, conversion to actual investment is low:
About 50 percent women know about investing in mutual funds and stock market.
However, only 15 percent actively invest in these
In contrast, 88 percent people are aware of gold as an investment, while 36 percent show intention to invest in it.
Investing Trends: Women vs Men
He also highlighted that women start investing later than men. on average:
Women start investing in mutual funds at the age of 35, while men start investing at the age of 30.
The average investment ticket size of women is almost 50 percent less than that of men
Average SIP investment: Rs 6,000-6,500 for women vs Rs 12,000 for men
According to them, these differences increase over time, having a significant impact on retirement wealth accumulation.
40% retirement gap
One of the most worrying findings discussed was the 40 percent gap in retirement wealth between men and women. Experts have attributed this to lower earnings, fewer working years and greater caregiving responsibilities among women.
Agarwal noted that women’s lifetime savings are reduced not only because they earn less on average, but also because they often pause careers or work fewer years. “This translates into a significant retirement shortfall,” he said, calling it a “significant concern for long-term financial independence.”
Gold, Equity and Traditional Habits
While women are increasingly investing in equities and mutual funds, gold continues to dominate household investment portfolios. Aggarwal said the gold allocation in Indian households remains at a high level of around 15 per cent, often leaving less room for equity-based wealth creation.
He also pointed to the growing interest in National Pension System (NPS) due to tax benefits along with mutual funds as preferred market-linked products.
building financial freedom
Girish emphasized that financial freedom directly impacts self-confidence and life choices. She urged women to gradually shift from conservative investments to a balanced portfolio, and suggested a step-by-step approach – start with hybrid funds before moving into pure equities.
Meanwhile, Agarwal stressed that financial independence should be the ultimate goal. “Financial independence is as important as physical health,” he said, adding that structured financial planning is essential in today’s uncertain economic environment.
He also cautioned against over-dependence on gold and traditional savings instruments while recommending higher equity allocation for long-term wealth creation.
What do women need to invest more in for their future?
Experts unanimously agreed that urgent action is needed to close the retirement wealth gap. Financial literacy, early investment and structured planning were identified as key pillars of change.
“Equity exposure should increase if wealth creation is the goal,” concludes Agarwal. She said that women should actively participate in financial decision making instead of relying on traditional household investment patterns.
As India’s financial landscape evolves, the message is clear: women are investing more than ever, but without faster and more informed financial decisions, the retirement wealth gap will persist.