At the age of 40, Priti Rathi Gupta, Managing Director and Promoter at Anand Rathi Group was pursuing Owner/President Management programme at Harvard University where she presented the business case for a financial management platform for women. But to her dismay she was met with scepticism. "Several men, who comprised 80 per cent of the class of 160, questioned the need for a gender-based investment platform," says Gupta. They couldn't understand why existing platforms can't reach out to women.
She explains that there are fundamental differences in the way women invest which are overlooked by traditional platforms. Women are conservative and balanced when it comes to taking decisions about money. They are more risk aware and prefer to make goal-based investments. However, most of the traditional platforms are structured around one's risk-taking capability. The question 'what is the risk appetite?' doesn't work for women. It intimidates them at best.
Also, financial planning for women has to take into account life and career stages that differ vastly from those of men. "Careers of women generally peak early, then there is gender pay gap that one has to be cognisant of. Plus, research shows women live longer," says Gupta.
According to DSP Mutual Fund's 'DSP Winvestor Pulse 2019' Survey only 33 per cent of the women invest, as opposed to 64 per cent men. Among them, only one-third take their own financial decisions; the rest have investments done on their behalf by someone else.
While LXME was created and launched in 2018, in January 2020, she launched LXME App as knowledge and a transaction platform to invest into mutual funds. "With LXME, I want every woman to start her journey of investing and take charge of her money and with that also her life," she says.
She says the differentiation LXME brings is its focus on education and creating awareness on the need for women to invest and grow their money. "There is a need to break myths that women are not good in investing. Often we see male family members taking decisions on behalf of even financially independent women," says Gupta.
To bridge the knowledge gap, they have byte-sized online courses on investing along with monthly webinars, bootcamps and Ask me Anything sessions. They also have a community of women where they uninhibitedly discuss their money aspirations, wealth goals and ask questions on how to invest.
Over the last four months since its launch, it has got 5,000 users. The platform is free and doesn't charge any sign up or brokerage from investors. For Gupta, the next aim is to make a million women gain financial acumen and freedom.