For years, Indian households placed women in charge of managing the household budget and day-to-day expenses. But investing? That was mostly considered a man’s job. In recent years, Indian women have started stepping into the world of investing with quiet confidence, and they’re not just participating; they’re outperforming.

Across mutual funds, equity markets, and even digital assets like Gold ETFs, women are generating better returns than the broader market and, in many cases, better than their male counterparts. In this article, we will explore the real data, behavioural insights, and structural shifts that explain why women in India are making better returns than the market.

The Numbers Speak: Women Outperforming the Market

Traditionally, Indian women were conditioned to save. Be it hiding cash in steel boxes or keeping gold aside for “emergencies,” the idea was always to build a safety net. But in the last decade, women have not only diversified into financial assets but have also embraced modern investment tools like Gold ETFs, which have delivered impressive results.

According to AMFI (Association of Mutual Funds in India), women now represent 25% of retail mutual fund investors. Even more impressively, they hold 33% of the total assets under management. Interestingly, their average SIP contributions are 22% higher than those made by men, and they invest 45% more through the lump sum mode as well.

Also, women investors are increasingly leaning toward passive investment strategies, with a notable shift toward Gold ETFs. In fact, their allocation to Gold ETFs rose sharply from just 5.2% of their mutual fund AUM in 2019 to 24.9% in 2024, highlighting a growing preference for digital gold over traditional physical holdings.

This rising participation in modern investments highlights not only women’s growing financial power but also a cultural shift toward acknowledging the long-term financial security that women need and deserve.

Why Women Are Outperforming the Market

Here is why women are outperforming the market.

1. Purpose-driven Investing

One big reason women are able to beat the market is that they invest with a clear purpose and strong sense of direction. While many male investors might jump into the market because of market trends or peer pressure, women typically invest with a specific goal in mind.

According to a survey by Axis Mutual Fund in 2024, 72 % of women in India begin their investment journeys with specific financial goals in mind, whether it’s to secure their children’s education, build a retirement corpus, or purchase a home rather than simply aiming for returns.

This goal-oriented approach helps them stay focused, especially during market fluctuations. Women are more likely to remain disciplined in their investing, sticking to their long-term objectives and avoiding impulsive decisions driven by short-term market noise.

2. Discipline and Long-Term Focus

If there’s one thing that sets women investors apart, it’s their discipline. Women tend to stay involved for the long run, avoiding the desire to seek quick returns.

One of the most powerful tools for long-term wealth creation in India is the Systematic Investment Plan (SIP). Women investors are far more likely to make regular, small contributions into mutual funds through SIPs than their male counterparts, and this regularity helps in building wealth over time.

The discipline of subscribing to SIPs ensures that women continue investing consistently, regardless of the market conditions.

3. Balanced Risk Appetite

Women are often more thoughtful and calculated in their risk-taking. They avoid irrational decisions, do their homework before investing, and spread their money across different asset classes to reduce risk.

This careful and balanced approach often leads to more stable, long-term returns and helps them stay protected from the ups and downs that come with chasing quick gains.

4. Thoughtful Diversification: From Gold Jewellery to Gold ETFs

While traditional gold and fixed deposits remain popular, more women are now broadening their investment horizons.

For example, many are choosing ETFs like Gold BeES, combining the familiarity of gold with the benefits of modern investment tools. Assets under management (AUM) for gold ETFs almost doubled to ₹55,677 crore by February 2025, up 95% from the previous year, reflecting a surge in investor appetite for digital gold investments.

In just five years, Indian investors multiplied their Gold ETF folios by over 13 times, an insight from Zerodha Fund House that shows how fast this digital gold rush is growing.

This pivot toward Gold ETFs shows not just financial awareness but a deeper understanding of smart, goal-aligned diversification.

5. Patience is Their Superpower

Being in the market for the long run is more successful than attempting to time it perfectly. Women instinctively understand this approach. Instead of chasing hot tips for intraday trades, most women prefer SIPs in mutual funds, PPFs, FDs, and index funds — assets that work best with a long-term view.

Studies show that women often hold onto their investments longer, letting compounding do its magic. Fidelity once published a study showing that women in the U.S. outperform men by 0.4% annually, simply because they trade less and hold longer. In India, similar behavioural trends are emerging.

They aren’t looking to “get rich quick.” They are investing with the purpose of retirement, a child’s future, and buying a house. These goals require time, and they know it.

6. Digital Learning

Gone are the days when women were isolated in their financial journeys. Today, dozens of female-led platforms and communities focus on financial education. They offer courses, live webinars, savings challenges, and investment guides tailored to women’s goals.

On social media, women follow financial influencers who break down concepts like SIPs, tax planning, and budgeting in relatable ways. Learning in a community makes finance feel less intimidating and more doable.

This shared learning environment is playing a huge role in turning women from cautious savers into confident investors.

The Behavioural Edge

There’s another important factor at play here: women’s natural behavioural advantages in investing. Research has shown that women tend to be less impulsive than men when it comes to making investment decisions. They’re less likely to jump in and out of the market based on emotional reactions. Instead, they take their time, weigh the pros and cons, and make decisions based on logic and research.

Women are also more likely to seek advice before making big financial decisions. This allows them to avoid expensive blunders that might harm their investment objectives. By surrounding themselves with knowledgeable advisors or consulting reliable resources, they ensure they’re making informed decisions that align with their long-term objectives.

Another behavioural advantage is that women are less prone to overconfidence. They tend to set realistic expectations for their investments, which helps them avoid the kinds of mistakes that come with overly ambitious goals or unrealistic market predictions. This careful approach helps them stay grounded and aim for steady, realistic growth.

What Are the Investment Challenges that Women Still Face?

Despite some remarkable progress, here are the challenges that women investors face in India:

1. Bridging the Financial Literacy Gap

Although there has been considerable progress, only about 21% of Indian women possess financial literacy. This highlights a pressing need for sustained education and awareness initiatives. Empowering women with financial knowledge, irrespective of their socio-economic background or geography, is essential for enabling their active participation in India’s economic growth.

2. Societal and Cultural Barriers

In many households, women are still not seen as financial decision-makers. They still consult or seek permission from their husbands before making any financial or investment decision. This indicates a deep-rooted belief that financial matters are primarily a male responsibility. These societal barriers limit women’s financial autonomy and their ability to grow their wealth independently.

3. Family Obligations and Time Constraints

Many women, especially homemakers and mothers, face time constraints that prevent them from actively engaging in managing their finances. Balancing family responsibilities with financial planning can be overwhelming, leading to a lack of attention to long-term financial goals.

While the time is changing, it would take more than just time to increase women’s participation in the investment space and turn it into a revolution. Yes, women are earning better returns and outperforming markets, but financial literacy, encouragement to invest are needed to spread this notion on a broader level.

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Conclusion

The landscape of investing in India is undergoing a profound shift, and women are leading the charge. They’re no longer just saving for a rainy day, they’re actively building wealth and outpacing the market. What sets them apart is their clear sense of purpose, disciplined approach, and thoughtful decision-making.