Women's Participation In Mutual Fund Investments: Here's What AMFI Data Reveals

Rs 33 in every Rs 100 invested in Mutual Funds (MFs) is owned by women investors, said Association of Mutual Funds in India (AMFI) in a recent report. That means the adoption of MFs among women investors has increased. Women now account for 33 per cent of the total asset under management (AUM) of individual investors in MFs.

The report, released jointly with Crisil, said that the AUM held by women investors have more than doubled in the last five years. It increased to Rs 11.25 lakh crore, as of March 2024, from Rs 4.59 lakh crore in March 2019.

AMFI said these calculations are based on data from individual investors, including high-net-worth individuals, retail investors, and non-resident Indians, excluding investments from institutions, corporations, and banks.

One In Four MF Investors Now A Woman

One in four mutual fund (MF) investors in India is now a woman, reflecting a positive shift toward financial empowerment. As of December 2024, women made up 25 per cent of unique MF investors. AMFI attributed this growth to the awareness initiatives by the AMFI and asset management companies.

Between April and December 2024, AMFI conducted 24 women-focused investor awareness programs, with over 5,700 women participating. These programs have helped improve financial literacy and encouraged women to make informed investment decisions, said AMFI.

Northeast Women Lead In MF Investments

The national participation rate of women in mutual funds is 25.1 per cent in terms of unique investors and 33.2 per cent in terms of the total AUM of individual investors. The higher AUM participation rate suggests that women tend to invest larger amounts compared to men. 

Thirteen states and union territories have a higher-than-average share of AUM from women investors. Leading the list are Mizoram (44.1 per cent), Nagaland (39.1 per cent), and Andaman & Nicobar Islands (38.6 per cent). Others include Sikkim (37.9 per cent), Goa (37.2 per cent), New Delhi (36.8 per cent), and Meghalaya (36.5 per cent). States like Maharashtra (35.4 per cent), Gujarat (34.7 per cent), Chandigarh (34.7 per cent), Madhya Pradesh (33.8 per cent), Arunachal Pradesh (33.7 per cent), and West Bengal (33.3 per cent) also surpassed the national average. 

According to AMFI, the high participation of women in MFs in several northeastern states can be attributed to the region's matrilineal societies and strong women-centric cultural norms. These factors empower women to take active roles in financial decision-making, leading to a higher share in retail AUM.