A growing financial shift is underway in India, with more women entering the investment ecosystem than ever before. Yet, despite rising participation, a significant retirement wealth gap of nearly 40 per cent continues to persist between men and women, highlighting deep structural and behavioural differences in how both groups build long-term financial security.

Speaking with Zee Business, financial experts Mrin Agarwal, CEO of Finsafe and Prathiba Girish, Founder at Finwise Personal Finance Services, decoded emerging trends in women’s investing behaviour and the urgent need for stronger financial planning among women.

According to Mrin Agarwal, there has been a clear positive shift in women’s investment behaviour over the years. “Women have started investing more, especially in the last two to three years,” she noted, adding that financial independence has become a key motivation rather than just family security.

Citing data, she pointed out that nearly one-fourth of mutual fund folios now belong to women investors, and women are increasingly engaging in conversations around wealth creation and financial freedom.

However, she also highlighted a critical social concern: financial security for women can quickly weaken during life disruptions such as divorce, widowhood, or career breaks, often leaving them financially vulnerable.

Prathiba Girish emphasised that women investors are gradually moving away from traditional savings habits. “We are seeing a clear shift from conservative fixed-income preferences to equity-oriented investments,” she said.

She noted that younger women investors are increasingly opting for equity mutual funds while reducing exposure to debt instruments. Over the last five years, women’s allocation to debt has dropped significantly, while equity participation has risen sharply.

Key changes highlighted include:

• Debt allocation dropping from 30 per cent to 9 per cent
• Equity allocation rising from 40 per cent to 65 per cent
• Overall portfolios now consisting of nearly 85 per cent equity and hybrid investments

Despite this shift, she stressed that women still lag in wealth accumulation due to lower income levels, career breaks, and caregiving responsibilities.

A detailed report discussed during the conversation—“Unlocking Her Wealth” by EY and Lxme—revealed a striking gap between awareness and action.

Agarwal explained that while awareness is growing, conversion into actual investing remains low:

Around 50 per cent of women are aware of mutual funds and stock market investments
However, only 15 per cent actively invest in them
In contrast, 88 per cent are aware of gold as an investment, with 36 per cent showing intent to invest in it

She also highlighted that women tend to start investing later than men. On average:

Women begin mutual fund investing at age 35, compared to age 30 for men
Women’s average investment ticket size is nearly 50 per cent lower than men’s
Average SIP investment: Rs 6,000–Rs 6,500 for women vs Rs 12,000 for men

According to her, these differences compound over time, significantly impacting retirement wealth accumulation.

One of the most concerning findings discussed was the 40 per cent retirement wealth gap between men and women. Experts attributed this to a combination of lower earnings, fewer working years, and higher caregiving responsibilities among women.

Agarwal explained 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,” she said, calling it a “critical concern for long-term financial independence.”

While women are increasingly investing in equities and mutual funds, gold continues to dominate household investment portfolios. Agarwal noted that gold allocation in Indian households remains high at around 15 per cent, often leaving less room for equity-based wealth creation.

She also pointed out rising interest in the National Pension System (NPS) due to tax benefits, alongside mutual funds as preferred market-linked products.

Girish stressed that financial independence directly impacts confidence and life choices. She urged women to gradually shift from conservative investments to balanced portfolios, suggesting a step-by-step approach—starting with hybrid funds before moving into pure equity.

Meanwhile, Agarwal emphasised that financial freedom should be the ultimate goal. “Financial independence is as important as physical health,” she said, adding that structured financial planning is essential in today’s uncertain economic environment.

She also cautioned against over-reliance on gold and traditional savings instruments, recommending higher equity allocation for long-term wealth creation.

Experts unanimously agreed that bridging the retirement wealth gap requires urgent action. Financial literacy, early investing, and structured planning were identified as key pillars for change.

“Equity exposure must increase if wealth creation is the goal,” Agarwal concluded, adding that women must actively participate in financial decision-making rather than relying on traditional household investment patterns.

As India’s financial landscape evolves, the message is clear: women are investing more than ever before, but without faster and more informed financial decisions, the retirement wealth gap will continue to persist.