Women Investors Are Outpacing Men in Mutual Funds – The Data Will Surprise You!

A recent study by Crisil and the Association of Mutual Funds in India (AMFI) has uncovered a major shift in investment patterns, with women investors leading the charge in long-term wealth creation. The numbers paint a compelling picture of how women are not only investing more but also holding onto their investments for longer, demonstrating financial discipline and patience.

Women’s Mutual Fund Growth Outpaces Men

Over the past five years, women’s mutual fund assets under management (AUM) for holdings exceeding five years have surged from 8.8% in March 2019 to 21.3% in March 2024. In contrast, men saw a rise from 8.2% to 19.9% during the same period.

But it’s not just about the total AUM—women are also showing greater commitment to long-term financial planning. The proportion of women holding mutual fund investments for less than a year has dropped from 40.5% in 2019 to 25.4% in 2024, a significant decline. Men, too, have reduced short-term investments, but at a slower pace—from 42.1% to 27%.

Why Are Women Winning in Wealth Creation?

Financial experts believe this shift is largely driven by women’s investment mindset, which is less reactive to short-term market fluctuations. Women tend to stay invested for longer, ensuring their portfolios benefit from compounding.

“Women investors are increasingly demonstrating patience and discipline in wealth creation,” says Navneet Munot, Chairman of AMFI. Unlike men, who often react to daily market movements, women prefer to let their investments grow over time.

“Women don’t monitor day-to-day stock market changes, and that increases the stickiness of their investments,” adds Kavitha Menon, founder of Probitus Wealth, highlighting why women are seeing greater financial gains over time.

The Rising Economic Power of Women

With increasing participation in the workforce, women now have more financial independence, enabling them to make informed investment decisions. According to the Periodic Labour Force Survey (PLFS) of June 2024, female workforce participation has jumped from 23.3% in 2017-18 to 41.7% in 2023-24—a key driver behind the rise in women’s mutual fund investments.

This financial empowerment is also evident in the numbers:

• Women’s gross mutual fund inflows surged by 56.5% to ₹3.13 lakh crore, compared to a 41.7% increase to ₹7.30 lakh crore for men.
• The average folio size for women investors has grown by 24% in five years, while men’s folio sizes grew by just 6%.

The Bigger Picture: Women Are Investing for the Long Haul

There’s also a social factor at play—many businessmen are now investing in the names of their female family members, further boosting women’s presence in mutual funds. “We are seeing a trend where businessmen are investing in their wives’ or daughters’ names, contributing to the rise in female investors,” notes DP Singh, Deputy Managing Director at SBI Mutual Fund.

Moreover, financial longevity is becoming an important consideration. Since women tend to outlive men, they are now more focused on securing their financial future. “There’s a growing realization that women need to save for the long term, and that’s driving more of them towards mutual funds,” says Swarup Mohanty, Vice Chairman of Mirae Asset Mutual Fund.

The Future of Investing is Female

The numbers don’t lie—women are playing the long game, making smarter investment choices, and reshaping India’s financial landscape. As more women enter the workforce, take charge of their financial independence, and recognize the power of disciplined investing, their influence on the mutual fund industry is set to grow exponentially.\

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Disclaimer: This blog has been written exclusively for educational purposes. 

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