Women's average monthly SIP investment at approximately Rs 14,000, higher than men: Report

A notable paradigm shift has emerged in the financial landscape. FinEdge, a tech-enabled investment management company, has revealed in a recent study that there has been a significant increase in financial awareness and independence among women post-2020. In 2023, 41% of new investors at FinEdge were women, signifying a growing trend of financial awareness and pursuit of independence among women.

The company conducted an in-depth study among 4,351 female clients aged 23 to 64 in March 2024 on the occasion of International Women’s Day.

Harsh Gahlaut, CEO of FinEdge, said, “It is evident from the study that women are not only investing more, but they are also investing smarter. By allocating a higher percentage of their monthly income towards their financial goals, women are taking proactive steps towards securing their financial future and achieving long-term success.”

Goal priorities: Goal-based investing has emerged as a focal point for women investors, with retirement and children's education taking precedence. A staggering 44% prioritise retirement planning, while 35% earmark funds for their children's education. Additionally, 27% prioritise their children's marriage goal, underlining the multifaceted financial planning approach adopted by women.

Women as early investors: Contrary to conventional wisdom, women exhibit a proactive approach to investing, with 39.3% initiating investments in their 20s and another 41% commencing in their 30s. This early start underscores the significance of investing awareness among young women, setting a solid foundation for achieving long-term financial goals.

Resilient and goal-focused: A resilient cohort, 71% of women investors at FinEdge demonstrate steadfast commitment, staying invested for over five years. Their ability to remain focused on long-term goals amidst market volatility reflects a disciplined investment mindset driven by purpose rather than impulsive decisions influenced by market noise.

Focused and disciplined investors: Women emerge as focused and disciplined investors, with an average SIP (Systematic Investment Plan) amount of Rs 4,483, surpassing their male counterparts who average Rs 3,992. This disciplined approach underscores women's dedication to realising important financial milestones in their lives, as per the report.

Women invest more for their goals: In addition to higher average monthly investments, women allocate more funds towards their goals, with an average monthly SIP investment of Rs. 14,347, compared to Rs. 13,704 for men. This revelation challenges traditional assumptions, highlighting women's proactive stance towards securing their financial future.

Methodology: FinEdge conducted the study in March this year. The sample is comprised of 4,351 women clients from the 23- to 64-year-old age bracket. The study includes clients from across the region, including the West, East, North, and South.