The study noted that women park 51 per cent of their funds in fixed deposits (FD) and savings accounts. This is followed by investment in gold 16 per cent, mutual funds 15 per cent, real estate 10 per cent, and a mere 7 per cent in stocks.
A recent study examining the investment behavior of urban women revealed that those earning in metropolitan cities tend to allocate their funds predominantly into low-risk investment avenues such as fixed deposits and savings accounts. The study, titled "Women and Finance," conducted by DBS Bank India and CRISIL, found that women allocate 51 percent of their funds to fixed deposits (FD) and savings accounts. Additionally, they invest 16 percent in gold, 15 percent in mutual funds, 10 percent in real estate, and a mere 7 percent in stocks.
The presence of dependents significantly shapes investment behavior, according to the study. Around 43 percent of married women with dependents allocate 10-29 percent of their income to investments. In contrast, a quarter of married women without dependents invest more than half of their income.
Moreover, the study highlighted that 47 percent of women make financial decisions independently, underscoring the trend toward financial autonomy. Among women aged over 45 years, 65 percent make financial decisions independently, compared to 41 percent aged 25-35 years.
The study also examined women's preferences for various banking and payment channels. About 33 percent of individuals aged 25-35 prefer using UPI for online shopping, while only 22 percent of those over 45 years old opt for UPI.
The report emphasized that UPI has become the preferred choice for urban women across various payment needs, including money transfers (38 percent), utility bills (34 percent), and e-commerce purchases (29 percent).
This trend signals a reduction in reliance on cash, although regional disparities are noticeable. For example, in Delhi, only 2 percent of women opt for cash payments, while in Kolkata, 43 percent prefer this method.
Regarding financial decisions, the study observed varying trends influenced by women's age, affluence, regional context, and family and employment situations. In Chennai, approximately 72 percent of women were found to make financial decisions confidently. In contrast, despite economic growth, only 31 percent of women in Coimbatore take financial decisions independently.
In Delhi NCR, 65 percent of women take charge of their financial decisions, influenced by the cosmopolitan culture and abundant opportunities in the city. However, Gurugram presents a contrasting scenario, with only 44 percent of women making independent financial decisions.