Women Investors In Mutual Funds Surge To 21%: AMFI Report

In the current landscape, investment activity in India is gaining momentum, with individuals exploring various avenues such as fixed deposits (FDs), the stock market, real estate and mutual funds. While these investments offer the potential for compounded returns, it is essential to conduct thorough research to mitigate risks and avoid losses. Among these options, mutual funds have emerged as a popular choice, attracting a growing number of investors, particularly women.

Recent reports indicate a notable rise in the participation of women investors in mutual funds, with their share increasing from 15 per cent in March 2017 to approximately 21 per cent by December 2023, as per data from the Association of Mutual Funds in India (AMFI). In February of the current year, the total assets under management (AUM) in mutual funds surpassed the Rs 50 lakh crore mark, reflecting the increasing preference for mutual fund investments among a wide range of investors.

The data further reveals that the growth rate of mutual fund investments in rural areas outpaced that of urban centres during the specified period, indicating a heightened interest among individuals residing in remote regions towards mutual fund investment opportunities.

Prepared by Credit Rating Information Services of India Limited (CRISIL) for AMFI, these reports, released by SEBI chairperson Madhabi Puri Buch, highlight interesting trends. Notably, nearly 50 per cent of women investors fall within the age bracket of 25–44 years, aligning closely with the overall demographic distribution of individual investors. Geographically, Goa leads with the highest share of women in the mutual fund industry at 40 per cent, followed by North-Eastern states at 30 per cent. Additionally, states like Chandigarh, Maharashtra and New Delhi exhibit women’s share in assets under management exceeding 30 per cent.

Most women mutual fund investors in India opt for regular plans and tend to remain invested for extended periods, contributing to the stability and growth of the mutual fund sector. Moreover, the number of women mutual fund distributors witnessed an upsurge, reaching 42,000 in December 2023, with assets under management totalling Rs 1 lakh crore.

The increasing participation of women in mutual funds underscores a positive trend towards financial inclusion and empowerment, contributing to the diversification and expansion of the investment landscape in India.