In a significant development, the share of women in Indian mutual funds has seen a remarkable rise. The Latest AMFI report records 21% of women’s share in mutual funds. This surge is backed by a substantial increase in the number of women mutual fund distributors, indicating a growing trend towards financial inclusion.
Let us take a look at the latest findings!
Rising Share of Women in Indian Mutual Funds| Key Highlights
· Share of women in mutual fund AUM increased from 15.2% in 2017 to 20.9% in 2023
· Number of women mutual fund distributors nears 42,000 mark, managing over Rs 1 lakh crore in AUM
· Growth in women investors is more prominent in the hinterland than in urban centres
· Age analysis shows nearly 50% of women investors fall in the 25-44 age group
· Women investors show a higher inclination towards new-age capital market instruments
· Handholding importance highlighted; women tend to hold SIPs for longer durations
· Goa has the highest share of women in the Indian mutual fund industry at 40%
· Most women prefer investing through the regular plan route and stay invested for longer
Growing Presence in Mutual Fund Distribution
The number of women participating as mutual fund distributors has steadily climbed. The women’s share has nearly reached 42,000 registrations by December 2023. These distributors are managing over Rs 1 lakh crore in Assets Under Management (AUM), as per the latest report from the Association of Mutual Funds of India (AMFI).
More women are venturing into mutual fund investments, with a notable surge observed in rural areas compared to urban centres. Enhanced accessibility to information and technology has facilitated this trend.
The rise in the share of investments by women in Indian mutual funds:
| Statistical Highlights | Values |
| Share of investments by women in MF assets (2023) | 21% |
| Number of women mutual fund distributors (December 2023) | Nearly 42,000 |
| AUM managed by women mutual fund distributors (December 2023) | Over Rs 1 lakh crore |
| Share of women in Indian mutual funds’ AUM (2017 – 2023) | Increased from 15.2% to 20.9% |
| Share of women folios and assets in B-30 cities (2017 – 2023) | Increased from 15% to 18% for folios, and from 17% to 28% for assets |
| Age group distribution of women investors | 50% in 25-44 years age group; 21% in 45-58 years age group; 16% in above 59 years age group |
| Holding period of women investors in SIPs (B30 and T30 cities) | 17% for more than five years in regular SIPs |
| Geography with the highest share of women in the MF industry | Goa (40%), followed by northeastern states (high 30s%) |
| Other regions with a significant share of women in the MF industry | Chandigarh, Maharashtra, New Delhi (over 30%) |
Factors Driving the Growth of Women’s Share in Mutual Funds
There are multiple factors responsible for this positive trend:
- With easier access to information and technology, women are now learning about mutual fund investments.
- There’s a positive trend towards greater financial literacy among women.
- Easy access to SIP investments.
Shift in the Mutual Fund Investment Landscape
According to a Crisil-curated report cited in the AMFI publication, the proportion of women’s investments in Indian mutual funds has escalated.
Women mutual fund folios have seen a notable increase, with their share in assets under management (AUM) rising from 15% in 2017 to nearly 21% in 2023.
Notably, the growth rate is higher in rural regions, where the share of women investors and assets has risen significantly.
Diversifying Geographical Dynamics
The report emphasises the shift in investment dynamics across different geographical zones. Notably, in B-30 cities (beyond the top 30 cities), the share of women investors has increased from 15 percent to 18 percent.
Additionally, the assets have surged from 17 percent to 28 percent during the same period.
Age Analysis and Investment Patterns
Analysis of age demographics reveals a substantial presence of young and middle-aged women investors. Nearly 50% of women in India’s mutual funds fall within the 25-44 age bracket.
Women investors tend to hold onto their investments for longer periods, particularly evident in systematic investment plans (SIPs).
Regional Insights
Geographically, regions like Goa and northeastern states exhibit a higher proportion of women investors, with shares exceeding 30 percent.
Chandigarh, Maharashtra, and New Delhi also boast significant participation from women in managing mutual fund assets.
Speaking at an AMFI event, Madhabi Puri Buch, Chairperson of SEBI, emphasized the role of women in driving inclusive investment practices.
Continued Preference for Mutual Fund Distributors
The report highlights that women investors prefer mutual fund distributors, with the number of female distributors steadily rising. As of December 2023, these distributors manage over Rs 1 lakh crore in AUM, showing growing confidence in their expertise and services.
Conclusion
The surge in women’s participation in mutual funds marks a pivotal moment in India’s financial journey. With a rise of women’s share in mutual funds to 21%, this trend reflects broader strides towards gender equality and economic empowerment.
Source- moneycontrol.com
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