EspressoLogy

The women of today are doing everything a man can do, and more. But there are areas we still haven’t fully explored yet, and investing is one of them. Traditionally, investing has been a man’s domain and this continues even today. Studies have found that women are less likely to invest their money and aren’t confident about their investing skills. But this needs to change.

I, for one, invest regularly in the stock market. I was inspired by my father, who chose the stock market over Fixed Deposits for growing his money. I also got the opportunity to work with a few good brokers at the start of my career. These jobs gave me exposure to this magnificent industry and its ecosystem. The successful investors I saw at these places and dad’s guidance inspired me to invest in stocks systematically from the beginning of my career.

My investments helped me purchase my first home and travel the world. More importantly, in many unforeseen financial crunches, like hospitalisation or a marriage in the family, my investments have shielded and supported me. This Women’s Day, I’d like all the women reading this blog to start investing too. Here are some reasons why.

Because we have our own money

Compared to before, women have greater access to income opportunities and better control over their finances. Along with salaried jobs, I have seen women earn an income through their social media channels or home businesses. Since we have access to our own finances, we should use it wisely, and to our advantage.

For financial security and independence

As per a 2020 Catalyst study, Indian women earned 34.5% less than men for the same amount of work. I also know of women who’ve had to take career breaks to raise a child or care for an aged parent, and then found it difficult to re-enter the workforce. Strong investments provide financial stability. From my own experience, I can tell you that good investments boost your confidence and give you the freedom to chase your dreams.

Because it’s not difficult

Many women I know fear to invest in the stock market or equities. They don’t have sufficient knowledge about investing, so they choose the safest modes to invest, like banks or other traditional means. However, they should diversify their savings. Invest in high risk, moderate risk or low risk plans. Develop a methodical approach to planning. When I started investing, I would take advice from my father and mentors at my work place. But in this digital era, many smart brokers are providing ample information on what to buy and where to invest with seamless and simplified trading platforms. I strongly recommend and suggest that women should explore this area and start investing regularly with good stocks.

Because we are better at investing

A 2018 study by Warwick Business School found that investments made by women participants outperformed those made by men by 1.8%. This is because women are risk-conscious, open to learning and goal-oriented by nature. I personally know of quite a few women who’ve made sound investment decisions and are now enjoying great returns.

Because it’s okay to make mistakes

Quite often, people, especially women, are afraid of the new – they wish to stick comfortably to something that is old and firmly established, like FDs and PPF. I am the opposite, and I believe there is value in taking risks and not following the crowd. When I started investing in stocks, I took some uncalculated risks and burnt my fingers. But this only made me bolder and wiser. I learnt the importance of patience and of diversifying my investments. So, don’t let the fear of mistakes keep you from trying something new. Take a few risks if the rewards are worth it.

Women around the world are realising the importance of investing and are taking steps to grow their finances. Recently, The Economic Times highlighted the growing participation of Indian women in the equity market, many of whom are first-time investors. I dream of having a stock market where a majority of the investors are women; the Bull and Bear markets are still male-dominated spaces, and this will take a while to change. However, the change starts from you and you can be the change.

This Women’s Day, give yourself the gift of a secure future by starting your investment journey. Starting small is better than not starting at all. To all the men reading this, share your investment knowledge with the women in your life and encourage them to invest independently. Stride towards a brighter financial future together, as equals.