Women constitute over 20% of MF investors; Goa tops the list

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Women are increasingly leaving their footprint not only in financial empowerment and consumption like driving more SUVs and purchasing more real estate, but also putting their signature in wealth creation, perhaps the trickiest of all challenges.

Latest data from Association of Mutual Funds in India (AMFI) reveal that the number of women in the MF pie has risen from 15% at the end of FY17 to almost 21% in Q3 of FY24. Incidentally, at 40% Goa tops the country with the highest share of women in the MF pie.

Women are also helping women manage wealth by operating as mutual fund distributors. Their number inched close to the 42,000 mark in December 2023 with their total assets under management exceeding Rs 1 lakh crore.

Furthermore, the rate of growth in the number of female investors was far more pronounced in the hinterland of the country compared to the urban regions.

The data was disclosed in a report put together by rating agency Crisil for AMFI and released by Sebi chairperson Madhabi Puri Buch. It also stated that almost 50% of women investors came from the 25-44 age group as against around 45% for overall universe of individual investors.

The share of MF folios belonging to women and assets in B-30 cities rose from 15% to 18% and from 17% to 28%, respectively in the period under review.

In the context of mutual funds, B-30 cities are those ranked beyond the top 30 urban agglomerations in terms of assets under management.

Incidentally, the assets under management in the MF industry recently surpassed Rs 50 lakh crore psychological mark as more and more investors came rushing to the market to join the party.

After Goa, come the states of the northeast with high 30s percentages. Chandigarh, Maharashtra, and the national capital of New Delhi also have more than 30% women in this domain of investors in terms of AUM.

What’s more significant, the report has stated that women tend to stay invested for longer when investing through a mutual fund distributor.

The Sebi chairperson Madhabi Puri Buch who released the report said women are championing the right investment causes. They are adding inclusivity to the decision-making processes making diverse voices heard and valued in the wealth creation process.