Women now drive 56% of household investment decisions in India: Marcellus report

Indian women are emerging as a powerful force in the country’s financial ecosystem, driven by rising education levels, increasing workforce participation, and stronger participation in banking and investments, according to a new report by Marcellus Investment Managers.

The report, titled Capital Her Future: Women Investors Insights Report, highlights a structural shift in India’s investment landscape, with women now independently making 56% of household financial investment decisions. Yet, despite their growing influence, women remain underrepresented in formal wealth management, pointing to a large opportunity for financial services firms.

Education and workforce participation reshaping financial behaviour

One of the key drivers behind this shift is rising educational attainment among women. India’s Gender Parity Index has crossed 1.0 across all levels of schooling, indicating that female enrolment has equalled or surpassed that of men. In urban higher secondary education, female enrolment now exceeds that of male students.

This educational progress is increasingly translating into economic participation. India’s female Labour Force Participation Rate (LFPR) reached 42% in 2024, the highest level in over three decades.

The nature of women’s work is also evolving. Between 2017–18 and 2023–24, the proportion of women working as own-account workers or employers rose from 20% to 31%, reflecting growing entrepreneurship and financial independence.

Women outpacing men in banking adoption

The report also points to a rapid expansion in women’s engagement with the formal banking system. Between FY19 and FY25, the growth ratio of women’s bank accounts and deposits compared with men ranged between 1.02x and 1.07x across rural, semi-urban, urban and metropolitan markets.

Women borrowers are also demonstrating stronger credit behaviour. As of December 2025, the gross non-performing asset (GNPA) ratio for female borrowers stood at 0.8%, compared with 1.1% for men, indicating consistently lower default rates.

Despite these gains, women remain underrepresented in formal investing channels. Women account for 25% of all investors and hold around 33% of mutual fund assets in India, according to the AMFI–CRISIL Factbook 2024. 

SIP-led investing gaining traction among women

Digital investment platforms are also seeing a steady rise in women investors. According to Share.Market, the wealth platform of PhonePe Wealth, women investors are showing a structured and disciplined approach to investing.

“On our platform, we are seeing a meaningful shift in how women approach mutual fund investing—with growing confidence, discipline and a clear long-term orientation,” said Nilesh Naik, head of investment products at Share.Market.

Nearly 90% of women investors on the platform begin their investment journey through systematic investment plans (SIPs), reflecting a goal-oriented approach to wealth creation, he said. Women investors also tend to commit higher amounts, with average SIP ticket sizes around 23% higher than those of men.

Participation is also becoming geographically diverse, with a significant share of new women investors coming from Maharashtra, Karnataka, Uttar Pradesh, Telangana and Rajasthan.

“These trends point to a broader mindset shift toward financial independence, with women actively making informed investment decisions and taking a long-term view of wealth creation,” Naik added. “The notion that women are conservative participants in financial markets is clearly evolving.”

A large opportunity for wealth managers

The report notes that India is witnessing the rise of its largest cohort of educated and financially active women, which is likely to reshape the country’s investment ecosystem in the coming years. 

As women gain greater economic independence and influence household financial decisions, financial institutions and wealth managers that design products and advisory services tailored to women investors are likely to benefit from India’s next phase of wealth creation.