Women in Finance: A Journey of Growth, Leadership and Empowerment

On International Women’s Day, we celebrate the remarkable progress that women have made in every sector, including finance. Over the past two decades, women have transformed the financial landscape, once a male-dominated industry, into a thriving, inclusive space where they are now leading change, innovation, and shaping the future of financial markets worldwide. This article explores the inspiring journey of women in finance, highlighting key milestones, their continued rise in leadership roles, and the crucial steps we must take to ensure further growth and equity.

1. A Historical Perspective of Women's Growth in Finance

• In 2000, women held fewer than 10% of senior roles in investment banking, asset management, and corporate finance.
• By 2010, thanks to changing attitudes, diversity initiatives, and stronger policies, women’s representation in finance grew to 15%-20%, setting the stage for significant transformation.
• 2020-2025 saw a marked increase, with women now comprising an increasingly larger portion of both entry-level and senior leadership roles. Women are not only thriving in finance—they are shaping the future as fund managers, CFOs, and CEOs.

A Historical Milestone: The data illustrates not just growth, but resilience and determination. Women are not only participants but are also leading the way towards systemic change.

2. Key Drivers Behind This Shift

The momentum behind women’s increasing presence in finance is driven by several critical factors:

• Educational Attainment: More women are earning advanced degrees in business, economics, and finance, making them formidable leaders and decision-makers in the industry.
• Corporate Diversity Initiatives: Companies are recognizing the power of gender diversity and investing in mentorship, equal opportunity, and leadership programs for women.
• Policy and Regulatory Support: Governments and industry bodies are championing the cause of gender parity by enforcing policies that mandate increased female representation on boards and in top-level roles.

3. Growing Participation in Mutual Funds and Investments

Women are no longer just passive participants in the financial ecosystem. Their investment behaviour has evolved to reflect more dynamic approaches:

• 31% increase in women mutual fund investors between 2021 and 2022, according to AMFI data.
• As of 2023, women now represent 40% of SIP (Systematic Investment Plan) accounts in India, showcasing their disciplined approach to wealth building and financial security.

Celebrating Financial Independence: This shift underscores the growing recognition of women’s financial literacy and empowerment—key drivers of personal and professional growth.

4. Increasing Share in Leadership and Decision-Making Roles

Women’s presence in leadership roles continues to rise, shaping key decisions and strategies:

• Private Equity: A report by Bain & Company reveals that women now occupy 22% of leadership roles in private equity firms, up from just 10% a decade ago.
• Mutual Fund Distributors in India: Women distributors increased to 21,000 by December 2023, collectively managing ₹1.7 lakh crore in assets.
• C-Suite Positions: The number of women CFOs globally has risen from 12% in 2010 to 23% in 2023, a notable increase in corporate governance.

5. Women as Fund Managers: Leaders of Financial Strategy

The impact of women is also evident in the role of fund management:

• According to Morningstar, women fund managers in India now oversee ₹4.85 lakh crore in assets as of 2023—up from ₹2 lakh crore just five years ago.
• Despite representing only 8-10% of fund managers, women manage 12-15% of the industry’s total assets, demonstrating exceptional skill in managing larger portfolios.

Women-led Funds Shine: Research has shown that women-led funds often outperform their benchmarks, highlighting not only their competence but their strategic foresight and ability to mitigate risk.

6. Impact on Household and Corporate Decision-Making

Women’s role in financial decision-making extends beyond the workplace and into their homes, where they are key financial decision-makers:

• 91% of urban women in India participate in key household financial decisions, according to the National Family Health Survey.
• 98% of urban women lead long-term financial planning, especially in areas like retirement planning and education.

In the corporate sphere, women’s involvement in finance teams often leads to stronger governance and more comprehensive risk management.

7. Challenges and the Way Forward

While we have seen substantial progress, there are still challenges that women in finance face:

• Glass Ceiling: Women remain underrepresented at the highest levels—CEO, MD, and on boards of directors.
• Work-Life Balance: Flexible working policies, including childcare support and remote work options, are needed to retain top talent.
• Mentorship Gaps: An increased presence of women mentors and role models is crucial for further empowering the next generation of female leaders in finance.

Striving for Equality: These challenges should fuel our commitment to creating an ecosystem that uplifts and supports the women who are reshaping the financial world.

8. Future Outlook: Continuing the Momentum

Looking ahead, the future for women in finance is bright. Continued government support, corporate diversity programs, and financial literacy initiatives will further level the playing field:

• Ongoing reforms in gender equality will see more women in leadership roles and decision-making capacities.
• Financial literacy programs like Ladies Who Lead, HerCapital, and SheEO are helping more women gain confidence and access to investment opportunities, paving the way for them to take on greater leadership roles.

9. Conclusion: Celebrating Women's Achievements in Finance

On International Women’s Day, we recognize and celebrate the extraordinary achievements of women in finance. From mutual fund investments to leading global financial institutions, women have proven themselves as catalysts of growth and champions of innovation. We acknowledge their success and, more importantly, commit to furthering the progress that allows women to thrive in this field.

Key Takeaways:

1. Substantial Growth: Women’s share in mutual funds, private equity, and leadership roles has steadily increased.
2. Performance & Leadership: Women fund managers often outperform benchmarks, and increased female participation correlates with stronger governance.
3. Policy & Education: Continued reforms, corporate initiatives, and educational opportunities will close the gender gap in finance, ensuring a future where women lead and succeed.

By celebrating these milestones, addressing ongoing challenges, and advocating for equality, we can create a financial ecosystem that empowers everyone, ensuring equal opportunities and sustainable success for women and men alike.