International Women’s Day 2022: Pandemic Birthed More Female Investors of the Stock Market
Finance, traditionally, has always been believed to be the den of men. Investing or earning was never a part of a women’s curriculum. However, those days are long gone, and today, women not only address their own finances but also sit in positions of power in all fields, stock markets being a pertinent part of the same.
Since the pandemic outbreak, the number of women who invest in the stock market has increased considerably. The growing trend of young Indian women learning the ropes of the investment game could positively impact the country’s total female investor participation rates.
This Women’s Day, Tickertape brings to you the analysis of how women have entered the field of stock investing.
Women, traditionally, have been believed to be housemakers. They were deemed fit to keep track of the monthly household budget and safely stash any spare cash left over.
However, with changing times, this thought process has changed. While there is still a long way for women to achieve parity in the financial participation department, a tide of change is sweeping the country.
Women who have had access to greater education than their mothers and grandmothers are choosing to push the boundaries and are aware of the need to control their own finances.
The lockdown was a trying time for most people. But it allowed the discovery of a newer way of finance, investment and other ways to increase earnings, especially for women. They have moved beyond the boundaries of traditional gold and have tried to put their hands on equities and like options.
According to data released by Sharekhan, the number of women who open Demat accounts (on their platform) increased by 77 % compared to the previous years! This alone speaks volumes on how women have entered the financial den of stock markets, a phenomenon that continues to date.
Lockdowns have been significant for capital market expansion, and this trend has been fuelled with phenomenal women’s participation! The pandemic affected the way people worked, spent, saved, and invested, and data from many sources revealed that the number of women investors had increased substantially since the pandemic began.
According to a recent survey, women between the ages of 18 and 25 are the most self-reliant, with nearly 60% of women in this age range saying they make the final decision on their investments. However, despite being financially independent, many Indian women struggle to invest independently due to a lack of confidence stemming from the perception that men are naturally better at managing money than women.
Supplementing household income amid job losses via stock trading
The pandemic’s economic collapse resulted in job losses and wage cuts, and many women were forced to look for other ways to supplement their families’ income. Many young women with access to the internet and smartphones turned to stock trading because of the prevalent uncertainty during the lockdowns.
As the pandemic pushed for a work-from-home model, women now have more opportunities not just to trade but also to improve their financial literacy. Many women have benefited from the work-from-home arrangement since it allows them to devote time to learning about various investment products in the stock market at their leisure.
Learning over following the herd
According to industry experts, analysts, and brokers, most women do not follow the herd when executing financial ideas. Previously, women were hesitant to participate and trade in the stock market, but with the advent of internet connectivity and real-time access to market data, financial market involvement has risen. Women are taking control of their finances with confidence by learning about excellent investing selections, portfolio creation, and diversification of investments.
Digital stock trading has created a variety of venues for high-frequency trading with low brokerage fees and minimal risk. In light of these circumstances, women are now better able to take charge of their finances.