Women in India are making a strong financial statement by increasingly investing in mutual funds. According to a recent report by the Association of Mutual Funds in India (AMFI) and Crisil, female investors now account for 25% of the total mutual fund investors. Even more impressive, their share in individual investor assets has reached one-third, signaling a massive shift towards financial independence.
Massive Growth in Asset Under Management (AUM)
The report highlights that the total asset under management (AUM) of women investors has surged from ₹4.59 lakh crore in March 2019 to ₹11.25 lakh crore in March 2024. This substantial growth demonstrates that women are becoming more proactive in wealth creation and financial planning.
Women Investors Prefer Direct Investment Over Brokers
One of the most significant trends observed in the report is the increasing preference for direct investments. By March 2024, nearly 21% of female investors opted for direct plans, compared to just 14.2% in 2019. This shift indicates a growing confidence among women in making investment decisions independently, without relying on intermediaries.
Young Women Driving the Trend
The biggest surge in direct investments has been seen among younger women aged 25-44. Their share in total AUM under direct plans has grown from 16% in 2019 to 27.3% in 2024. Even senior women investors (above 58 years) have increased their share from 13.9% to 17.6%, showing a widespread trend across age groups.
Investment Distribution by Age Group
A closer look at the investment patterns reveals that the highest contribution comes from women aged 45 and above.
| Age Group | Equity Investment Share |
| Under 25 years | 1.6% |
| 25-44 years | 28.4% |
| 45-58 years | 30.1% |
| Above 58 years | 37.5% |
This data confirms that women above 45 years hold the majority share (68%) in mutual funds, showcasing their trust in long-term wealth accumulation.
Women Prefer Long-Term Investments Over Men
Another critical observation from the report is that women investors are more inclined towards long-term investments than men.
| Holding Period | Women (2019) | Women (2024) | Men (2019) | Men (2024) |
| Less than 1 year | 40.5% | 25.4% | 42.1% | 27.0% |
| 1-2 years | 27.6% | 19.5% | 27.2% | 19.3% |
| 2-3 years | 12.0% | 15.1% | 11.8% | 14.5% |
| 3-4 years | 7.1% | 10.4% | 6.8% | 11.0% |
| 4-5 years | 4.0% | 8.3% | 3.8% | 8.3% |
| More than 5 years | 8% | 21.3% | 8.2% | 19.9% |
From the data, it is evident that the share of women investing for over five years has surged from 8% to 21.3%, surpassing male investors, whose share grew from 8.2% to 19.9%.
SIP Investments Among Women Witnesses a 270% Growth
Systematic Investment Plans (SIP) have emerged as a popular mode of investment among women. The report highlights that:
- Women’s SIP accounts rose from 71.13 lakh in December 2020 to 2.63 crore in December 2024, marking a staggering 270% increase.
- SIP contributions by women grew by 319% between March 2019 and March 2024.
- The AUM of women investors in SIPs surged from ₹1.2 lakh crore in December 2020 to ₹4.3 lakh crore in December 2024, reflecting a fourfold increase.
This data clearly indicates that women are not just investing more but are also leveraging systematic plans for consistent and long-term wealth growth.
Why Are Women Investing More?
Several factors are contributing to the increased participation of women in mutual fund investments:
- Financial Awareness: More women are now educated about the benefits of financial planning and investment strategies.
- Digital Access: With the rise of online investment platforms, investing in mutual funds has become easier and more accessible.
- Higher Earnings: Increased workforce participation and higher salaries have empowered women to make independent investment decisions.
- Long-Term Security: Women prioritize financial security, making them more inclined to invest in long-term plans.
- Flexible Investment Options: SIPs and direct investment plans provide women with flexibility, encouraging them to invest without large upfront amounts.
