From paychecks to portfolios: Women driving wealth creation in India

Women are increasingly taking control of their finances, closing the wealth gap through smart investments, entrepreneurship, and financial independence, write Dr Prasanna Chandra & Savita Shrimal

Dr Prasanna Chandra & Savita Shrimal

Women have a natural advantage when it comes to navigating the complex world of finance. Advances in neuroscience reveal that the male and female brains operate differently, providing women with unique strengths in managing their financial lives.

For one, women have a larger corpus callosum — the tissue connecting the right and left hemispheres of the brain. The right hemisphere governs emotion and creativity, while the left controls logic and reason. This enhanced cross-hemisphere connection in women enables them to more intuitively link words and emotions, a trait that proves valuable in financial decision-making. Women are generally more attuned to language, expression, and emotional cues, which helps them communicate their needs and aspirations clearly, especially when planning for the future.

In financial matters, women tend to approach decision-making holistically, often considering long-term outcomes. Unlike men, who often associate wealth with status or power, women view wealth as a means of security. While men tend to have a more short-term focus, women prioritise stability and future planning, particularly around retirement and education.

Studies suggest women are ‘risk-aware’ rather than ‘risk-averse.’ They take a more measured approach to risk, requiring a firm understanding before making financial decisions. This cautiousness means they are less likely to be swept up in market panic or ‘irrational exuberance,’ as some financial planners put it. Women’s tendency for thoroughness, paired with their emotional sensitivity, leads to more comprehensive, well-considered financial strategies. Today, more women are taking charge of their financial futures, whether through investments, entrepreneurship, or financial planning. Here are some of the most promising trends:

A growing presence of women investors

Women now make up 22% of stock market investors and 28% of mutual fund investors in India. They are disciplined and focused, with nearly 71% of women investors staying invested for more than five years. Their decisions are often driven by long-term goals like retirement planning and securing their children’s education.

Empowerment through financial independence

Financial independence gives women control over their lives, enabling them to make confident decisions without reliance on others. Independent women are more likely to negotiate salaries, advocate for equal pay, and serve as role models for younger generations, promoting financial literacy and empowerment.

Government initiatives & digital finance

Government programmes like Pradhan Mantri Jan Dhan Yojana and Stand-Up India aim to increase financial inclusion among women. Meanwhile, mobile banking services like UPI and fintech apps are helping women manage their finances more independently. In fact, women account for over 30% of UPI transactions in India.

Women in entrepreneurship

Women are increasingly embracing entrepreneurship, with many starting businesses in fields such as technology, fashion, and e-commerce. A recent study found that 70% of women entrepreneurs are motivated by self-aspiration rather than financial necessity. Government initiatives like the Mahila Vikas Nidhi, Mudra Yojana, and Udyogini Scheme provide much-needed support to women-led businesses.

As women continue to build wealth and make informed financial decisions, the gender wealth gap is narrowing. With more access to education, financial tools, and entrepreneurial opportunities, women are carving out their own path to financial security and independence. This shift not only empowers women but also contributes to a more equitable society.

By supporting and encouraging women in finance, we’re not just investing in individuals but in a future where financial independence is accessible to all, regardless of gender.

(Dr Prasanna Chandra is Director of the Centre for Financial Management, Bengaluru, and Savita Shrimal is a qualified CFP and CWM with an MSc in Applied Finance. They are authors of Mastering Personal Investments, recently published by Bloomsbury.)