Women fund managers highlight long-term investing edge, call for greater representation in MF industry

(Representative image)

• Women now make up 26 percent of mutual fund investors in India
• Women investors show strong discipline, trade less frequently
• Only 10 percent of fund managers in India are women

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With women now accounting for about 26% of mutual fund investors in India, female fund managers at Moneycontrol’s Fidex (financial distributor expo), on International Women’s Day said women investors often display behavioural traits that support long-term wealth creation: including lower trading frequency, less panic during market volatility, and stronger investing discipline.

However, they pointed out that women still make up only around 10% of fund managers in the mutual fund industry, underscoring the need for greater representation in investment decision-making roles.

The panel featured Salonee Sanghvi, founder of MyWealthGuide; Chitra Iyer, co-founder of MFA Capital; Bharti Sawant, fund manager at Mirae Asset Investment Managers (India); and Poonam Tandon, chief investment officer at IndiaFirst Life Insurance.

Behavioural advantage in investing

Salonee Sanghvi cited global research indicating that women tend to perform well as investors because of behavioural discipline.

“Women make better investors than men because they tend to trade less, react less to market movements, and focus more on the long term,” she said, adding that these habits allow compounding to work more effectively over time.

At the same time, she noted the relatively small number of women managing funds in the industry. “It’s sad that we have so few of them. The industry definitely needs more women fund managers,” Sanghvi said.

Behaviour matters as much as financial knowledge

Chitra Iyer, who moved into investing after nearly two decades in corporate and investment banking, said financial decision-making is often driven more by behaviour than technical knowledge. “Money decisions are so much about behaviour rather than anything else,” she said.

Iyer advised young women starting their financial journeys to first build an emergency corpus. “Keeping aside money for the next six months for lifestyle expenses is critical,” she said, before allocating funds towards other goals such as buying a home or vehicle, investing in self-education, taking sabbaticals, or travel.

Investing for freedom, not just security

Bharti Sawant said the motivation for women to invest is gradually shifting from financial security to financial independence. “With increasing investment awareness, digital access, and financial literacy, women are taking decisions to invest to achieve financial freedom,” she said, adding that this empowers them to make independent life choices.

Sawant also said women fund managers have gained strong acceptance in the industry. “We haven’t faced any such concerns. There is very good acceptance in the market because women have demonstrated their ability to manage large funds effectively,” she said.

‘Risk aware’, not risk-averse

Poonam Tandon described her journey from corporate lending at IDBI to treasury and eventually the role of CIO, where managing investments for policyholders brought a sense of fiduciary responsibility.

She said the common perception that women are risk-averse is often misplaced. “Women are perceived as risk-averse but they are actually risk-aware,” Tandon said, explaining that women investors tend to take balanced decisions and remain invested for longer periods.

She added that younger women, particularly in tier-2 and tier-3 cities, are increasingly taking independent financial decisions. “Lots of women now are taking their own decisions. The younger generation especially doesn’t ask anybody,” she said.

Growing participation

Panelists also observed that women investors are becoming more comfortable navigating market volatility when financial concepts are explained clearly and expectations are set upfront.

With Gen-Z women increasingly opting for SIPs over traditional fixed deposits and digital platforms expanding access in smaller cities, the panel said participation among women investors is likely to continue rising.

However, they emphasized that greater representation of women in fund management and leadership roles will be crucial as the investor base becomes more diverse.