Share of women in MF AUM rises from 15.2% in 2017 to 20.9% in 2023

Close on the heels of the International Women’s Day, a study has shown that women investors have registered a strong rise in their share in the total assets under management (AUM) even as the growth has been more prominent in the hinterlands as compared to the metros.

Backed by recent industry insights from data from the Association of Mutual Funds in India, and curated by CRISIL, the report titled ‘Mutual Growth’ underscores the significant strides women have made in mutual funds participation.

As per the data, the share of women in the industry’s assets has expanded from 15% in March 2017 to nearly 21% as of December 2023. More importantly, the pace of growth is more prominent in the hinterland versus urban centres as the share of women folios and assets in B-30 cities has increased from 15% to 18% and from 17% to 28% during the period.

Some of the findings of the report include:

Age analysis of women investors indicates almost 50% of women investors fall in the 25-44 years age group, versus around 45% for overall set of individual investors.

Goa boasts the highest share of women in the mutual fund industry at 40%, followed by northeastern states with the share in excess of 30%. Chandigarh, Maharashtra, and New Delhi also have over 30% 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.

The report was released at a special industry initiative for International Women’s Day where women fund managers, research analysts and dealers from the industry were felicitated by Sebi chairperson Madhabi Puri Buch and AMFI board members.

“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,” said Buch.

“Together, women can champion a paradigm shift where they are not confined by outdated stereotypes, but empowered to thrive authentically and unapologetically in every aspect of their lives. Let us, as an industry, cultivate an environment that recognises women's role in investments domain,” she added.

In a similar context, Navneet Munot, Chairman of AMFI, said that 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. 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,” said Munot.