The investment landscape for women in India has evolved significantly, with a notable shift towards equity investments and passive strategies such as gold ETFs. According to a recent report by the Association of Mutual Funds in India (AMFI), the share of equity in women's overall mutual fund AUM surged from 43.3% in 2019 to 63.7% in 2024, highlighting their growing confidence in the stock market.

Rise in Equity and Gold ETF Investments

Women investors are diversifying their portfolios, with gold ETFs growing from 5.2% of their mutual fund AUM in 2019 to 24.9% in 2024. This trend indicates a shift from traditional gold holdings to electronic gold investments, reflecting an increased preference for passive investment strategies.

Mutual Fund AUM Doubles in Five Years

Over the past five years, the mutual fund AUM held by women has more than doubled, reaching Rs 11.25 lakh crore in March 2024, compared to Rs 4.59 lakh crore in 2019. Today, women account for 33% of individual investors' AUM, with one in every four mutual fund investors in India being a woman.

Systematic Investment Plans (SIPs) Gain Popularity

SIPs have emerged as a preferred investment route among women, with the number of SIP accounts held by women growing by 269.8% since 2020. A significant portion of this growth is coming from Tier 2 and Tier 3 cities, indicating increased financial awareness beyond metropolitan areas.

Preference for Long-Term Investments

A key trend is the growing commitment to long-term investment strategies. The share of women holding mutual fund assets for over five years has increased from 8.8% in 2019 to 21.3% in 2024. Conversely, short-term holdings (less than one year) have dropped from 40.5% in 2019 to 25.4% in 2024, signaling a more strategic approach to financial planning.

Women as Financial Advisors

Women are not just investing but also taking on advisory roles, with the number of female mutual fund distributors rising to 37,376 as of December 2024, accounting for 21.5% of India's total mutual fund distributors.

Regional Participation in Mutual Funds

Investment trends vary across states, with Mizoram, Nagaland, and Sikkim leading in women’s mutual fund AUM contributions. States like Maharashtra, Gujarat, and Delhi also see high participation, whereas Haryana, Rajasthan, and Bihar continue to lag in women’s financial inclusion.

Increasing Adoption of Direct Plans

Women investors are increasingly opting for direct mutual fund plans, with the share rising from 14.2% in 2019 to 20.33% in 2024. Regular plans still dominate at 79.67%, but the rise in self-directed investing indicates growing financial confidence among women.

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With increasing financial literacy and access to investment options, women are playing a more significant role in India’s investment ecosystem. The future looks promising as more women investors embrace strategic, long-term financial planning.