The report has introduced the women’s financial prosperity index (WFPI), which scores the country at 28.1 out of 100, indicating that while financial access has expanded significantly, women’s ability to build wealth through investments remains limited.
Women begin investing five years later on average and start with nearly half the investment size of men.
Nearly one-third of women prefer physical gold
Equity and mutual fund investing
A central finding of the Lxme–EY report is the stark gender gap in participation in capital markets. Only 8.6 per cent of women invest in mutual funds or equities, compared with 22.3 per cent of men. Women also account for just one in four mutual fund investors in India. Even when women begin investing, they typically do so later than men — around the age of 35 compared with 30 for men — and with smaller initial investments.
Data cited in the report shows that women hold only 23 per cent of equity investor accounts and 25 per cent of mutual fund folios. They represent about 28 per cent of registered systematic investment plan (SIP) accounts and roughly 29 per cent of first-time mutual fund investors. On average, a woman’s first mutual fund investment ticket is about ₹6,500, nearly half the ₹12,000 average for men, while the average starting SIP amount is about ₹2,300, compared with ₹3,800 for male investors.
These patterns, the report notes, are shaped by both structural and behavioural factors. Women tend to begin investing later and with smaller surpluses because they often shoulder household financial management and face more volatile income streams.
Savings pattern
According to the report, women’s labour force participation stands at 41.7 per cent, far below the 78.8 per cent participation rate for men. As a result, women’s savings often prioritise safety and liquidity rather than long-term growth. The report shows that 32.6 per cent of women prefer to save in physical gold, compared with 25.8 per cent of men. About 22 per cent rely on post office savings schemes and nearly 19 per cent save through informal channels such as cash holdings, chit funds and self-help groups —double the proportion of men using such instruments.
In addition, participation in long-term retirement instruments also remains low. Only 14.2 per cent of women hold pension or provident fund accounts, compared with 32.8 per cent of men. Overall, Indian women hold only about 60 per cent of men’s retirement wealth.
According to the Lxme–EY report, drawing on national datasets, an EY survey of 1,033 respondents, and Lxme’s platform data, redesigning financial systems to better reflect women’s income patterns, risk perceptions and financial journeys could significantly expand their participation in capital markets. It would also strengthen domestic savings and long-term investment flows, unlocking a potential ₹40 lakh crore boost to India’s economy.
Published on March 6, 2026