More Women Investing in Mutual Funds – Here’s What They Prefer

Women are becoming major investors in mutual funds, narrowing the gap with men. As of December 2024, 1 in 4 unique individual mutual fund investors is a woman. Their investments are spread across different categories, including equity, debt, hybrid, and passive funds.

Women’s Mutual Fund Investments Have More Than Doubled

According to an AMFI report, the total assets under management (AUM) by women investors have more than doubled in the last 5 years. Their AUM increased from ₹4.59 lakh crore in March 2019 to ₹11.25 lakh crore in March 2024. Women now hold ₹33 out of every ₹100 invested in mutual funds.

Preference for Long-Term Investments

Women investors are increasingly opting for long-term investments. In March 2024, 21.3% of their AUM had been held for more than 5 years. Equity remains the top choice across all age groups, with growing investments in small-cap funds over the last 5 years.

Shift in Investment Choices

The way women invest has changed significantly. Their equity AUM has increased to 63.7% as of March 2024, while investments in debt funds have declined across all age groups. Hybrid fund allocations have remained stable at around 20%. Women are also showing a greater interest in passive investments and electronic gold schemes.

Growing Interest in Passive Investing and Gold

Women’s investments in passive strategies grew from 2.5% in March 2019 to 4.1% in March 2024. Investment in passive gold schemes, including gold ETFs, surged from 5.2% to 24.9% during the same period. This indicates a rising preference for electronic gold investments.

Increase in SIP Accounts by Women

Systematic Investment Plans (SIPs) among women have grown rapidly. The number of SIP accounts held by women increased by 269.8% over 4 years, from 71.13 lakh in December 2020 to 2.63 crore in December 2024. The AUM of these SIPs has also surged by 250%, rising from ₹1.2 lakh crore to ₹4.3 lakh crore during this period. More women in smaller cities (B30 cities) are adopting SIPs as a preferred investment option.

Conclusion

Women are playing a bigger role in India’s mutual fund industry, favouring long-term equity investments and SIPs. Their growing participation highlights financial independence and a shift toward wealth creation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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