Naari Shakti Exclusive: Amid Rising Female Voters, Women Expect Many Empowering Schemes Ahead Of Election

With the 2024 Lok Sabha election just around the corner, it is important to note the number of female voters are rising consistently in the country. Sneha Poddar, Associate Vice President, Retail- Research, at Motilal Oswal Financial Services Limited, says women are becoming important vote banks, and they are expecting empowering schemes from the parties. In an interview with GoodReturns.In, she said, political parties cannot ignore this vote bank because women are getting educated and participating in the workforce. She believes women will be among the major contributors to the economy's journey towards the Rs 5 trillion mark if participation increases with improved productivity and upskilling.

Poddar explains that women are stepping out of their traditional form of investments such as gold, FDs, and provident funds post-COVID pandemic, and are boldly taking up riskier assets as investment chioces, especially the next-gen women increasingly entering the stock market. To first-time women investors, she advises to begin their investment journey as early as possible, and should first focus on gaining knowledge and understanding of the market. Among good investment options for women, Poddar highlighted mutual funds, NPS, PMS, AIFs and others.

Here are the excerpts from the interview with Sneha Poddar, Associate Vice President, Retail- Research, MOFSL:

What women-empowering schemes you are expecting in the Lok Sabha elections?

With female voters increasing and becoming an important vote bank, we can expect various women-empowering schemes to be announced by the political parties. Parties cannot ignore this vote bank as more women are getting educated and participating in the workforce. Recently BJP's Ladli Behna scheme was a big hit and helped the party's victory in the Madhya Pradesh elections while cash handouts to female heads of families and free bus rides for women led to victory for the Congress in Karnataka elections.

With the election nearing, political parties are again focusing on wooing the women voters. The ruling Govt has done a lot in the past for the upliftment and betterment of women.

Over Rs 8 lakh crore has been disbursed among women under various government schemes while Over 1 crore women have become 'Lakhpati Didis' so far. Recently the govt also introduced the Women's Reservation Bill in the Lok Sabha. Further, it is conducting 11 massive outreach programmes to reach out to the poor and women. Even other political parties are not being left behind and are announcing freebies to assist women financially.

How women will contribute to the economy and market in the next five years?

Over the last few years, we have seen a paradigm shift with more women joining the workforce and becoming business leaders or occupying key roles. Today female labour force participation stands at 37% vs 23% five years back, with women contributing 18% to India's GDP. Though this is remarkable it's still much below global standards. Going ahead if women's participation increases with improved productivity through upskilling, then it could accelerate India's journey towards ₹5 trillion economy.

The need of the hour is to bring more women into the formalization of employment through increasing employment in non-agricultural and skilled jobs. The current government has realized this and is trying every possible way to improve this ratio through various policies and initiatives. As the participation would improve, more women would enter into the world of investment. Currently, just 20% of women invest in the stock market.

So far women have been preferring gold, fixed deposits and provident funds as investments. But gradually and especially post covid, we have seen more women, especially millennial and next-gen women increasingly enter the stock market. This reflects the increased confidence of the Indian women who have always been great money managers at home.

Higher participation and success in turn would attract more females into the stock market which will fuel aspiration in them and make larger women financially independent. In terms of market, increased women's participation can result in increased liquidity, while creating a diverse investor base, which in turn can mitigate risks and enhance market stability.

What advice will you give to first-time traders, wanting to explore equities and the F&O market?

My advice to first-time women traders is to start your investment journey as early as possible. As soon as they start earning, investment should be an important component of their financial plan as it gives them adequate time to build wealth. Having said that, first-time traders should not get greedy and should first focus on gaining knowledge and understanding of the market by reading more books on the same, taking expert help, etc.

They should then develop a short or long-term investing style of their own depending on their objectives. Ideally one should start small with the cash market first and then gradually explore the F&O market. But before that, one should assess her risk-taking appetite and build a strategy around it. For direct investment, it's important to always stay informed with the latest developments, otherwise, mutual funds would be a better investment tool.

Any other market-related instruments that are good options for retail investors in the category of women?

There are various market-related investment options, including mutual funds, NPS, PMS, and AIFs, that women can consider to achieve their financial goals. Traditionally, owning gold has always been viewed as financial self-sufficiency for a woman. Thus Gold exchange-traded funds (ETFs) are the most prominent option in gold investment for women. This apart mutual funds are the most preferred investment to take exposure in the market, especially for women who feel less confident and lack the knowledge to take direct exposure.

Anything else you would like to add?

Empowering women would not help individual females but could have a multiplier positive impact on society as a whole. It would create more equitable world and contribute to overall economic growth.