Share of women investors in mutual funds grows from 15% in March 2017 to 21% in December 2023

The share of women investors in mutual funds has increased from 15 per cent in March 2017 to nearly 21 per cent in December 2023, according the latest data of Amfi (Association of Mutual Funds).

The overall asset under management in mutual funds crossed the Rs 50 lakh crore-mark in February this year as a large number of passive investors are flocking to mutual funds to save and earn more.

The Amfi data showed the share of women investors in mutual funds increased from 15 per cent in March 2017 to nearly 21 per cent in December 2023. This pace of growth was more prominent in the hinterland versus the urban centres during the period.

The share of women folios and assets in B-30 cities has increased from 15 per cent to 18 per cent and from 17 per cent to 28 per cent, respectively, the data showed.

The report, prepared by Crisil for Amfi and released by Sebi chairperson Madhabi Puri Buch, further said that almost 50 per cent of women investors fall in the 25-44 age group as against around 45 per cent for overall set of individual investors.

Goa boasts the highest share of women in the mutual fund industry at 40 per cent, followed by northeastern states with high 30s percentages. Chandigarh, Maharashtra, and New Delhi also have over 30 per cent share of women in assets under management.

Most female MF investors continue to invest through the regular plan route and stay invested for longer when investing through a mutual fund distributor.

The number of women MF distributors has also increased and was near the 42,000-mark as of December 2023 with their total AUM (assets under management) of over Rs 1 lakh crore.

Releasing the report, Buch 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.

Navneet Munot, Amfi chairman, said the increasing participation of women in MFs is a testament to their growing economic empowerment and greater financial literacy.

According to Venkat Chalasani, Amfi chief executive, increase in the number of women distributors shows their ability to make financial decisions for themselves and guide others reflecting a growing confidence and financial awareness among women.