How can Indian women overcome mental blocks around investment? Find out | Mint

Ask any working woman today and she will tell you that she does not enjoy being dependent on anyone. We have come a long way from maintaining our homes and hearths, to becoming self-sufficient earners with well-kept houses, and we even help our families make important money-related decisions.

But still, many women stutter when it comes to investing. “What if I lose money? I do not know all those money words. Is it something men are supposed to do?” are some aspects that come to mind.

Financial independence is crucial for long-term security, yet societal conditioning, lack of exposure, and fear of risk often hold women back from taking control of their investments. The good news? These barriers can be broken with awareness, education, and small, actionable steps.

Common mental blocks

Before overcoming investment phobias, one should identify the most usual mental blocks preventing women from taking charge of their finances proactively.

Many women avoid investing because they consider financial planning to be too complex or beyond their level. This is because of cultural conditioning, as men are traditionally expected to take care of money-related things. In fact, many highly educated women are not sure about handling investments, even when they have the same intellectual levels as men as, from their childhood days, the majority of Indian women rely on their fathers, brothers, or husbands to make decisions about money. This kind of reliance creates a psychological block, and it is difficult for women to make autonomous investment decisions even when they can afford to do so.

Separately, women are more conservative with finances, focusing on security rather than growth. While this cautious approach is an asset, it can also rob them of investment potential. Fear of failure or losing money deters women from investing in stocks, mutual funds, and other growth investment vehicles. Further, terms like “equity,” “mutual funds,” “diversification,” and “compounding” can be frightening to an investor who is new to the field. Many women do not discuss money simply because they believe the language is beyond their knowledge.

Finally, one of the most prevalent fallacies is that a lot of money needs to be invested. Women who earn or save less often have the perception that investment is not affordable for them. However, even small investments, if done consistently, can lead to colossal wealth in the long term.

Ways to overcome mental blockages

The first step is acknowledging such blockages. The second step is actually attempting to overcome them.

Knowledge and awareness: Knowledge is the solution to fear. Women must take the initiative to learn about personal finance from books, online courses, and financial literacy workshops. Financial concepts can be taught using real-life examples—just as they manage household spending, investing can be about how to spend for future needs. There are numerous women-investing groups today that offer beginner-friendly information that addresses their issues.

Confidence development through small steps: Investing experience gives way to investment confidence. Women can start with small, manageable investments such as

• SIPs (Systematic investment plans): Investing at least Rs. 500 a month in mutual funds can bring about confidence and market familiarisation.
• Gold ETFs or digital gold: Since gold has always been a safe bet, switching over to new-age gold investment schemes could be a seamless step.
• Recurring deposits or fixed deposits: These provide security and returns and help women get used to financial instruments.

Breaking cultural stereotypes: Women must take a proactive role in family financial planning. Facilitating joint conversations with wives, mothers, or nearest friends on investment, budgeting, and finance goals can reduce such traditional stereotypes. Financial inclusion has to be encouraged at all levels and it starts with talking finances at home to daughters.

Creating financial independence: Financial independence is not just about earning money; it’s about knowing how to save and invest it.

Some practical ways of becoming financially independent are:

• Having a personal savings and investment plan separate from family money.
• Tracking income, spending, and savings to make informed decisions.
• Being aware of tax-saving investment plans such as ELSS (Equity Linked Savings Scheme) and PPF (Public Provident Fund) to save more.

Take charge of your financial future

Investing isn’t solely about making money—it’s confidence, independence, and financial security. Women have been successfully overseeing household budgets for decades; let’s take that skill to the world of investing.

Breaking mental blocks around investing isn’t about making drastic changes overnight. It is about starting small, staying consistent, and gradually building knowledge and confidence. So, if you have been hesitant about investing, take that first step today.

Padmaja Choudhury is a freelance financial content writer. You can reach out to her at [email protected].