A few days after the nation celebrated International Womens day Association of Mutual Funds in India (AMFI) shared data curated by CRISIL, showing share of women in mutual funds AUM has shot up from 15.2 per cent in 2017 to 20.9 per cent in 2023.The report titled ‘Mutual Growth’ said that the growth is more prominent in the hinterland versus urban centres. In these B-30 cities, the share of women folios surged from 15 per cent to 18 per cent, while the share of assets rose from 17 per cent to 28 per cent during the same period (2017 to 2023). B 30 or “Beyond 30” cities are cities and towns in India that are not part of the top 30 cities having highest exposure to mutual funds. Typically, these are smaller cities and towns with fewer investment options like mutual funds.
Women’s empowerment in financial decision-making and their increasing momentum towards embracing capital market instruments is visible in the mutual fund industry. In line with the mutual fund industry’s exponential growth, crossing the Rs 50 lakh crore mark, women are also increasingly making their presence felt in the industry.
Age analysis of women investors indicates almost 50 per cent of women investors fall in the 25-44 years age group, versus around 45 per cent for overall set of individual investors. Women in the 45-58 and above 59 years group account for 21 per cent and 16 per cent of the folios versus 15 per cent and 11 per cent respectively for the overall set.
Goa boasts the highest share of women in the mutual fund industry at 40 per cent, followed by northeastern states with percentages above 30. Chandigarh, Maharashtra, and New Delhi also have over 30 per cent share of women in the industry’s assets under management.
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. 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.
Sebi Chairperson Madhabi Puri Buch at the ceremony in which report was released 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 Together, women can champion a paradigm shift where they are not confined by outdated stereotypes but empowered to thrive authentically and unapologetically in every aspect of their lives.”
Navneet Munot, Chairman of AMFI, remarked, “ We are witnessing a positive trend towards greater financial literacy and inclusion among women, which is crucial for the overall development of our society. We, at AMFI as a part of our journey towards a Viksit Bharat want to take this to the next level by conducting more women focused investor awareness initiatives.”
Venkat Chalasani, Chief Executive of AMFI, added, "It is heartening to see women embracing new-age financial instruments, such as mutual funds, alongside traditional investment options. The increase in women distributors, highlights their ability to make financial decisions for themselves and guide others reflecting a growing confidence and financial awareness among women."
