1. What is the role of women in shaping wealth and finance?

What is the role of women in shaping wealth and finance?

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3 min read • Updated: February 13, 2024, 5:12 PM

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Women play crucial role in shaping wealth for the family and for business as well, with their proven frugal saving habits and proper financial planning.


Key Takeaways

Studies show that the active contribution of women in financial systems results in improved risk management and increased resilience to financial shocks. Women possess a higher attention to detail which is an essential quality for effective money management. Moreover, businesses with at least one female founder tend to generate more income.

Social norms in India are in a state of transformation. Presently, an increasing number of women are successfully running a multi-national corporation and many occupy prominent roles in both corporate and domestic realms.

This reality is not just witnessed in the business world but also in areas of family wealth and finance. Her active involvement demonstrably leads to positive outcomes for the family.

The are several studies that have confirmed the observation and highlighted the importance of women's involvement in financial decision-making.

Food for thought

As per insights by Delliote, women's representation in corporate leadership roles is set to grow to 28% by 2023 A study conducted by financial services heavyweight Wells Fargo a few years ago noted that overall, women tend to make better trading decisions compared to men. As per Niti Ayog reports, 20% of Indian startups are owned by women and the numbers are set to rise in the years to come. The same report suggests that enterprises with at least one female founder tend to make 10% more cumulative revenue.
As per Business Insider India, women techies earn 7% more than their male counterparts. 32% of global wealth is managed by women, as per the Indian Wealth Management Forum The Association of Mutual Funds in India (AFMI) reported a surge of new entrants in the mutual fund landscape to the tune of 27.50 lakh women investors in 2023.

These facts lay the foundation for the imperative that women play a crucial role in driving financial success in the boardroom and at home.

Understanding the Female Advantage

Organisation and detail-driven

Women tend to do much better with budgeting, tracking expenditures, and comprehensive planning. Because of their organised approach, resource allocation and decision-making are no longer a matter of guesswork and more structured.

Risk-aware not averse

It has been observed that women tend to focus their investment goals in alignment to personal life goals and not just performance and wealth generation. As per a Wells Fargo analysis, women are more risk-aware and therefore diversify their portfolios more effectively, focusing on preservation and asset protection.

Long-term thinking

With an instinctive awareness of future uncertainties, women prioritise saving and long-term planning. This cultivates a habit of economising and financial preparedness for unforeseen circumstances.

Collective consideration

It's not just their resilience that makes women great at financial decision-making, but the behavioural tendency to consider the collective good is what leads to household, societal and corporate betterment.


Wealth generation and financial security should not be viewed through the lens of gender biases and stereotypes. Behavioural tendencies like being risk-aware, patient, goal-oriented, and long-term thinking make up the foundational qualities of women being a positive force in driving growth in the corporate and domestic spheres.