Why Do The Majority Of Women Avoid Investing In The Stock Market?

Majority Of Women Avoid Investing In The Stock Market?

The present era is the era of the modern and progressive woman. Women are more successful than they have ever been. While women’s success has resulted in more wealth being created, it has also resulted in greater obstacles in their daily family lives, particularly in their spending and investing decisions. Let’s look Why Do The Majority Of Women Avoid Investing In Stock Market?

In India, there is a significant gender disparity in stock market investment. According to a recent poll by Central Depository Services Limited (CDSL), male investors account for the majority of investors in Indian equities markets, about 75%, while female investors account for only 25%. 

Well-Known Investors? Warren Buffet, Benjamin Graham, Peter Lynch 

Warren Buffet, Benjamin Graham, Peter Lynch, Charlie Munger, and Rakesh Jhunjunwala are among the most well-known investors who have gained fortunes from stock market investments. And we are sure, you are quick to notice. All of these are men. 

However, In practically every field today, women are giving men a run for their money. Women like Barkha Dutt, Medha Patkar, Kiran Bedi, Tessy Thomas, Nirupama Rao, Sumitra Mahajan, and Indira Gandhi have shattered gender barriers and achieved success in industries including aerospace, business, sports, and politics. 

However, how many such names can you recall when it comes to stock market investment in India?

Women Avoid Investing In The Stock Market
Female Share Trader At Desk With Stock Price Data Displayed On Laptop And Digital Tablet

In India Too, Male Investors Dominate Stock Market Participation and women Avoid Investing In Stock Market

Let’s go by a recent poll conducted by Central Depository Services Limited (CDSL)- one of the two authorized depositories in the Indian Capital Market, male investors account for 75% of Indian equities markets participation, while female investors account for only 25%. 

A very recent data lists financial restrictions, personal constraints, attitudinal constraints, and gender stereotypes as the factors that prevent women from investing in the stock market.

There are a number of reasons why women do not invest actively in the stock market. Let’s look at some of the reasons why women choose gold, real estate, bank fixed deposits, post office deposits, and other conventional assets class over stock market investments. 

Preference For Liquid Investments Over Stock Market Investments

Men are more willing to sacrifice financial asset liquidity in exchange for higher risk-adjusted total investment returns. 

Women prefer financial assets with a high degree of liquidity, such as bank fixed deposits, whereas men are more willing to sacrifice financial asset liquidity in exchange for higher risk-adjusted total investment returns.

Fear Of Investing In The Stock Market: The Risk Factor why women Avoid Investing In Stock Market

The short-term stock market investment comes with its own risk, and many investors have lost money as a result of irregular investment strategies. As a result, there is a widespread notion that stock market investing is high-risk and difficult to profit from. 

Gold, real estate, and fixed deposits all come with their own set of risks too. While gold requires extra protection for safekeeping due to its vulnerability to theft, real estate does not have a high level of liquidity. Fixed deposits, like other investments, have risks that most individuals are unaware of.

Each depositor in a bank is protected up to a maximum of Rs.1,00,000 under the Deposit Insurance and Credit Guarantee Corporation program, according to RBI regulations, for both principal and interest amounts held by the depositor in the event of the bank’s dissolution or termination of its license.

Women Avoid Investing In The Stock Market

Lack Of Financial Awareness: Stock Market Investment

From the beginning, India’s stock markets have consistently outperformed all other asset types. But still, most working women still prefer to invest in asset types such as gold, real estate, and fixed deposits because they view stock market investing to be too complex and risky. 

Stockative: India’s Only Social Media For Traders

Founded in Dec’2020, Stockative is India’s only exclusive social media platform for stock traders and investors where anyone can join and start learning the nitty-gritty of stock market investment. Stockative is our effort to create awareness and to make the kind of knowledge and skillset required to be a successful trader accessible for everyone in India. 

Stockative allows everyone to exchange techniques and get inspired by others’ moves. As a member of the larger social trader group at Stockative, anyone can choose to ‘follow’ another well-established trader and see where exactly they are investing.

Stockactive works wonders by providing newbie and professional traders alike with quick and easy access to the complex world of financial markets.

Stockative allows anyone to build a profile using their Gmail, Twitter, Facebook, or LinkedIn credentials, making the site very user-friendly. 

Do you want to learn more about social media for stock traders? Click Here

Conclusion: Why Women Avoid Investing In Stock Market?

Women Avoid Investing In The Stock Market

Women have conquered most aspects of life, and stock market investing should be no exception. Women’s participation in the Indian stock market could skyrocket if women are educated about the advantages of investing in stocks. 

Frequently Asked Question 

Why are women not interested in investing?

On top of that, women are less positive about investing. Only half of the women (52%) say they feel convinced managing their finances. … A study saw 56% of them don’t invest due to doubt even they hold the money. The key causes are they don’t know where to begin and they have to pay back credits.

Why more women should invest?

Because women compare risk otherwise, we are less inclined to see large fluctuations in our portfolio preferences, meaning a more constant growth over time. Less prone to trade properties, which turns into nearly a 1% greater increase in finance earnings per year than men (who trade 45% more often than women).

What percent of stock traders are female?

Between stockbrokers, 15.0% of them are women opposed to 80.2% which are men.

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