. Women investors jumped nearly 58% to reach 74.4 lakh as of December 2022.){kind=link}
Its been more than three years since the covid rattled the entire world, including India. From health to livelihood, there was barely any aspect of life that the pandemic did not hurt.
But amidst all this, a trend that has come to light is that women investors have taken a big step towards not just saving but actually investing money, and that too in mutual funds.
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Women Investors Jump Over 50% In Covid Hit Years
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The number of women investors in mutual funds has significantly increased during the past three covid years (2020, 2021, and 2022). Women investors jumped nearly 58% to reach 74.4 lakh as of December 2022.
The number of women investors on the basis of PAN stood at 46.98 lakh in December 2019, according to data from the Association of Mutual Funds Industry (AMFI). AMFI is the association of all asset management companies of SEBI-registered mutual funds in India.
The number of women investors in the mutual fund industry rose from 46.98 lakh in December 2019 to 74.4 lakh at the end of December 2022, indicating an increase of over 27 lakh investors.
Women investors from the top 30 cities (T30), which include metros and other large cities, grew to 41.66 lakh from just 27.94 lakh in December 2019, data showed. T-30 refers to the top 30 geographical locations in India.
In the beyond 30 (B30) cities, their base in MF space jumped from 19.04 lakh in 2019 to 32.82 lakh in December 2022. There is a visible positive spike of almost 11 lakh women investors joining the MF bandwagon between 2020 and 2021, as per ET report.
N. S. Venkatesh, Chief Executive Officer (CEO), AMFI, says that overall, nearly 40 lakh new investors came into the MF world last year, despite flat markets. As per the TOI report, investments through the SIP route crossed the Rs 14,000-crore mark for the first time in March.
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Age Wise Breakup Of Women Investors
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Data showed that the maximum number of women investors, at 28.45 lakh, belonged to the age group of 45 years and above. Further, 2.82 lakh women investors belonged to the age group of 18 to 24 years of age.
Women investors in the 18–24 age group jumped more than four times since December 2019, highlighting the appeal of MFs among young investors. Compared to that, the number of women investors in the 45+ age bracket grew to 28.46 lakh in December 2022 from 22.13 lakh in December 2019, a growth of just 29 percent during this period.
In terms of asset break-up, women investors had Rs 6.13 trillion invested under regular plans of MFs, while Rs 1.42 trillion was under direct plans.
Where Did Indians Invest?
Inflows into Indian equity mutual funds jumped 31% to Rs 205.34 billion ($2.51 billion) in March 2023, the highest in 12 months, according to data from AMFI.
Small-cap funds accounted for most of the investments at Rs 21.29 billion, while inflows into large-cap funds nearly tripled to Rs 9.11 billion in March from Rs 3.55 billion in the previous month.
Contributions to systematic investment plans (SIPs), in which investors make regular payments into mutual funds, rose over 4% to a record 142.76 billion rupees from 136.86 billion. As per a Reuters report, over 700,000 new SIP accounts were opened in March.
SIP contributions had fallen marginally in February after hitting a fresh record in each of the previous six months, data showed. SIP contributions have hit nearly Rs 1.91 trillion since the start of 2022, higher than foreign outflows into Indian equities of Rs 1.39 trillion over the same period.
Liquid funds, i.e., those that mature in a short duration of 91 days, logged outflows of Rs 569.24 billion, the most since September 2022, according to AMFI.
The mutual fund industry, including debt, equity, hybrid, and other schemes, logged a total net outflow of Rs 192.64 billion ($2.36 billion), compared to inflows of Rs 95.75 billion in February, AMFI data showed.
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