Women Now Make Up 25% of Investors and Hold 33% of Mutual Fund AUM

The Indian mutual fund industry has witnessed a remarkable transformation, with women now accounting for over 25% of individual investors and holding 33% of the individual assets under management (AUM), as per news reports.

This shift signifies not only greater financial independence but also a broader trend of financial inclusion. Women are taking a more proactive role in managing their investments, reshaping the landscape of wealth management.

Investors Beyond Big Cities Are Joining In

Another key trend is the participation of investors from beyond the top 30 cities in mutual funds. Financial awareness and accessibility have contributed to this expansion, ensuring that investment opportunities are no longer confined to metropolitan areas. 

The mutual fund industry has played an instrumental role in providing a platform for wealth creation, allowing more households across the country to participate in India’s financial growth story.

Mutual Funds Have Grown Over 9x in 16 Years

The mutual fund sector has experienced exponential growth over the years. The total AUM has surged from ₹5.89 lakh crore in May 2008 to a staggering ₹53.4 lakh crore in March 2024. This substantial rise is reflective of growing investor confidence and the increasing integration of mutual funds into household savings strategies. 

The share of mutual funds in Indian household savings has grown from 7.6% in FY21 to 8.4% in FY23, further demonstrating the industry’s growing relevance.

90% of Mutual Fund Investments Are Now Digital

Digital transactions have revolutionised the way investors access mutual funds. In FY 2024, approximately 90% of all mutual fund purchases were conducted through digital channels, highlighting the convenience and efficiency of modern investment platforms. The rise of digitalisation has removed barriers to entry, making investments more accessible to a wider audience, including first-time investors.

SEBI’s Role in Strengthening the Mutual Fund Landscape

The Securities and Exchange Board of India (SEBI) has been pivotal in maintaining the integrity and stability of the mutual fund ecosystem. Regulatory measures have ensured transparency, investor protection, and fair practices within the industry, fostering trust among investors.

Retail Investors Are Bringing Stability to Markets

Retail investors have emerged as a crucial component of the capital markets, providing resilience and liquidity. The growing inclination towards systematic investment plans (SIPs) and cost-efficient options such as passive funds suggests that investors today are more patient, disciplined, and well-informed. Awareness initiatives by the mutual fund industry have played a key role in fostering this shift towards structured and sustainable investing.

Conclusion: More Inclusion, More Growth

The increasing participation of women and retail investors signifies a promising future for the mutual fund industry. With digital advancements, regulatory support, and growing financial literacy, mutual funds are set to become even more integral to Indian household savings. The industry continues to evolve, ensuring that wealth creation remains an accessible and inclusive journey for all.

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. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.