More Women Are Turning To Mutual Funds: In a noteworthy shift in India’s investment landscape, more women are turning to mutual funds, marking a significant transformation in how women approach personal finance. This trend has been gaining momentum over the past few years, driven by greater financial literacy, digital access, and tailored investment products. As of March 2024, women made up nearly 25.1% of unique mutual fund investors and accounted for 33.2% of the Assets Under Management (AUM) held by individual investors, according to data from AMFI and CRISIL.
This rising participation isn’t just a statistical shift—it reflects broader societal and economic changes. With more women joining the workforce, managing family finances, and taking charge of their financial futures, the mutual fund industry is seeing not only a rise in assets but also a transformation in investor behavior.
More Women Are Turning To Mutual Funds
| Metric | Data |
|---|---|
| Women’s Share in Unique Investors | 25.1% as of March 2024 |
| Share in Individual AUM | 33.2% |
| Rise in SIP Investments | Over 319% growth from March 2019 to March 2024 |
| Equity Fund Allocation | Grew from 43.3% (2019) to 63.7% (2024) |
| Women Mutual Fund Distributors | Nearly 21,000 active as of December 2023, managing approx. ₹1.7 lakh crore |
| Top Drivers | Financial literacy, digital platforms, increased workforce participation, tailored products |
| Official Source | AMFI India |
The surge in women investing in mutual funds is not a fleeting trend—it’s a reflection of changing mindsets, better access, and a growing awareness of the importance of financial independence. With tools like SIPs, digital platforms, and female advisors leading the way, women are becoming key stakeholders in India’s investment ecosystem.
As more women continue to take control of their finances, they’re not only securing their own futures but also reshaping the nation’s financial narrative for generations to come.
Why More Women Are Turning To Mutual Funds?
There was a time when women, particularly in India, were largely sidelined in financial decision-making. Today, that narrative is changing. Women are not just saving money—they’re investing it, often strategically and with clear goals in mind.
1. Increased Financial Literacy
Financial literacy programs by government bodies, NGOs, and private players have empowered women with the knowledge and confidence to explore investment options. Social media influencers and financial bloggers also play a pivotal role by demystifying complex financial jargon.
2. Tech-Driven Access
Digital transformation in the mutual fund space—via apps, robo-advisors, and simplified online KYC processes—has democratized access to investment platforms. Women can now start a SIP or invest in a diversified portfolio with just a smartphone.
3. Tailored Investment Products
Many asset management companies (AMCs) have started offering goal-based solutions, like child education plans, retirement funds, and women-centric portfolios that focus on safety, tax savings, and long-term growth.
Systematic Investment Plans (SIPs): A Popular Choice
Among all investment modes, SIPs have emerged as the favorite among women. According to a report by Angel One, women invested 22% more in SIPs and 45% more in lump sums than men on average.
This signals a strategic, goal-oriented approach to investing:
- Discipline: SIPs encourage a regular savings habit.
- Affordability: Starting investments with as little as ₹500/month.
- Compounding: Long-term wealth creation through regular investing.
Shifts in Asset Preferences: From Debt to Equity
Traditionally, many female investors leaned toward conservative debt instruments like fixed deposits and gold. However, the new wave of investors is more comfortable with market-linked instruments, especially equity mutual funds.
Between March 2019 and March 2024:
- Women’s share in equity AUM increased from 43.3% to 63.7%
- Preference grew for diversified and hybrid funds for better risk-reward balance
This indicates a growing risk appetite and longer investment horizons, suggesting a deeper understanding of market dynamics among women.
The Rise of Women Financial Advisors
It’s not just about investing. More women are stepping into advisory roles, too. As of December 2023:
- Over 21,000 active women mutual fund distributors were recorded.
- They collectively managed an AUM of nearly ₹1.7 lakh crore, per AMFI data.
This trend enhances financial inclusion, as female investors often feel more comfortable discussing finances with women advisors. It also reinforces peer-based learning, fostering a community-driven approach to investment education.
Practical Guide: How Women Can Start Investing in Mutual Funds
Whether you’re a working professional, entrepreneur, homemaker, or student, starting your mutual fund journey is easier than ever. Here’s a step-by-step guide:
- Understand Your Financial Goals: List down short-term (travel, gadgets), medium-term (education, house), and long-term (retirement, children’s future) goals.
- Complete KYC: Use an online platform or visit an AMC/distributor. Submit:
- PAN card
- Aadhaar card
- Bank details
- Photograph
- Choose the Right Fund Type: For beginners:
- Large-cap equity funds: Lower volatility, established companies
- Hybrid funds: Mix of equity and debt
- ELSS (Equity Linked Savings Scheme): For tax-saving with 3-year lock-in
- Decide Between SIP or Lump Sum:
- SIP: Ideal for salaried or regular income
- Lump sum: Good for windfall income or bonuses
- Monitor and Rebalance: Review your investments every 6–12 months. Adjust based on goals or market conditions.
Financial Inclusion: A Broader Economic Perspective
Women’s rising investment in mutual funds is also a signal of growing economic empowerment. It brings several benefits:
- Improved household financial planning
- Better retirement readiness
- Increased financial independence and confidence
- Enhanced economic participation, which contributes to GDP
The financial industry is beginning to respond with more inclusive marketing, customized advisory services, and even women-specific investment platforms.
Expert Take: What Industry Leaders Say
According to Sundeep Sikka, CEO of Nippon India Mutual Fund:
“Women investors are proving to be more disciplined, consistent, and long-term focused. Their entry into the MF space has added tremendous value to the ecosystem.”
AMFI Chairperson Nimesh Shah also noted:
“The future of India’s mutual fund industry lies in tapping the underrepresented segments—particularly women and youth.”
FAQs On More Women Are Turning To Mutual Funds
Q1. Is it safe for women to invest in mutual funds?
Yes. SEBI regulates mutual funds in India, ensuring transparency, safety, and regular disclosures.
Q2. Can homemakers invest in mutual funds?
Absolutely. As long as KYC is completed and funds are sourced legally, anyone can invest.
Q3. What’s the best mutual fund for women beginners?
Consider hybrid or balanced funds to start, or SIPs in large-cap equity funds for stability.
Q4. How much should I invest initially?
Start small—₹500 per month is enough to begin a SIP and develop a habit.
Q5. Are there tax benefits for women investors?
