Share of investments by women in MF assets rises to 21%: AMFI report

The pace of growth is more prominent in the hinterland versus urban centres.

With improving ease of access to information and technology, more women investors are investing in mutual funds, according to a report released by the Association of Mutual Funds of India (AMFI), the industry trade body for mutual funds, on March 11.

As per the report curated by Crisil, the share of women in Indian mutual funds’ assets under management (AUM) has shot up from 15.2 percent in 2017 to 20.9 percent in 2023.

As per the industry data, the pace of growth is more prominent in the hinterland versus urban centres; the share of women folios and assets in B-30 cities has increased from 15 percent to 18 percent and from 17 percent to 28 percent, respectively, during the period.

T-30 refers to the top 30 geographical locations in India and B-30 refers to the locations beyond the top 30.

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Navneet Munot, Chairman of AMFI, remarked, “The increasing participation of women in mutual funds is a testament to their growing economic empowerment. We are witnessing a positive trend towards greater financial literacy and inclusion among women, which is crucial for the overall development of our society.”

The age analysis of women investors indicated that almost 50 percent fall in the 25-44 years’ age group, versus around 45 percent for the overall set of individual investors, showcasing higher inclination among young and middle-aged women to invest in new-age capital market instruments.

Women in the 45-58 and above 59 years’ group account for 21 percent and 16 percent of the folios versus 15 percent and 11 percent, respectively, for the overall set.

Meanwhile, the importance of handholding is also corroborated by the holding period data of women investors in systematic investment plans (SIPs). Data shows women investors are parking their funds in regular SIPs, at 17 percent in both B30 and T30 cities, for more than five years compared with 3-5 percent for direct plans in these regions, respectively.

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In terms of geography, Goa had the highest share of women in the mutual fund industry at 40 percent, followed by northeastern states with high 30s percentages. Chandigarh, Maharashtra, and New Delhi also have over 30 percent share of women in the industry’s assets under management.

Speaking at the AMFI event, Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI), said, “Women can lead and champion the right investment causes by leveraging their perspectives, advocating for inclusive decision-making processes, and fostering environments where diverse voices are heard and valued. Together, women can champion a paradigm shift where they are not confined by outdated stereotypes, but empowered to thrive authentically and unapologetically in every aspect of their lives.

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The report also showed that most women continue to invest through the regular plan route in mutual funds and stay invested for longer when investing through a mutual fund distributor.

Also, the number of women mutual fund distributors has steadily increased, nearing the 42,000 registration mark as of December 2023, managing over Rs 1 lakh crore in AUM.