Women Investors: A Literature Review

Abstract

Individuals across the globe have become increasingly active in financial markets. The advent of new technology, the availability of various financial products, the liberalization of the economy and the support of an efficient banking system have all facilitated the participation of investors in Indian financial markets. Household savings form a significant part of investments in any economy. In Indian context, the percentage of savings is quite high. The high percentage of savings in India is primarily on account of the savings made by women in India. The role of women in investment decision-making in India cannot be ignored. Therefore, the objective of the study is to provide insights into the characteristics that act as strengths and weaknesses of women and to bring out the opportunities and threats faced by them as investors. In the present study, the diverse literature available worldwide on investment decisions of women has been explored and analysed. The findings of the study revealed that women are holistic thinkers, balanced, intuitive and quality conscious. They adopt a futuristic approach and perform in-depth research prior to investing. They are good savers and at the same time self-controlled. All these characteristics acts as their strengths while undertaking investment decisions. On the other hand, risk aversion, conservative attitude, lower levels of financial knowledge, lack of confidence, too much dependence on guidance from others, reluctant to cause unnecessary change in status quo, poor health and religiousness are their weaknesses. The microfinance, financial literacy and women empowerment initiatives intend to provide opportunities for their growth and development whereas a lesser amount of pay, shorter and interrupted employment history, and exclusion from informal networks act as threats to women’s financial well-being. The study suggests that the endeavours made by women and the support from the society is needed in order to convert the weaknesses and threats of women into their strengths and opportunities for them, thereby improving their participation in financial markets.