Women in India are making significant strides in the investment landscape. According to data from PhonePe Wealth, women are now surpassing men in both Systematic Investment Plans (SIPs) and lump sum mutual fund investments. An analysis of one lakh women investors between January and December 2024 reveals that they are embracing long-term investing with confidence and strategic intent.
Higher SIP and Lump Sum Investments
The data highlights that the average SIP transaction value for women is 22 per cent higher than that of men. Furthermore, women’s lump sum investments exceed men’s by a staggering 45 per cent. This marks a shift from traditional conservative financial behavior to a proactive and diversified approach to wealth creation.
“We are witnessing a profound change in women’s investment behavior,” said Nilesh D Naik, Head of Investment Products at PhonePe Wealth. “Women are diversifying their portfolios and committing to long-term goals with a clear, strategic vision, playing a vital role in reshaping the financial landscape.”
Preference for Disciplined, Long-Term Investment Strategies
A notable 90 per cent of women investors begin their journey with SIPs, showcasing their preference for disciplined, long-term strategies. Women are not only maintaining this approach but also increasing their investment amounts. The average SIP transaction for women stands at ₹1,300, reflecting a 22 per cent higher investment than their male counterparts.
Additionally, women are spreading their investments across a variety of asset classes, including contra/value funds, flexi-cap, mid-cap, small-cap, and thematic funds. This shift indicates a growing comfort with diversification and risk-taking in wealth-building strategies.
Financial Inclusion Expands to Smaller Cities
A remarkable 72 per cent of women investors hail from B30 cities (Beyond Top 30), demonstrating financial inclusion beyond metropolitan areas. This trend suggests that investing is no longer limited to urban elites, as financial opportunities now extend to women in smaller towns and cities.
Moreover, young women are driving this transformation. About 74 per cent of female investors are under the age of 35, with the largest group (29 per cent) falling between 26 and 30 years old. These young investors are entering the financial markets early, focusing on long-term growth and security.
Industry-Wide Growth in Women’s Investments
Broader industry data corroborates this trend. As per the Association of Mutual Funds in India (AMFI), women now account for 33 per cent of the total individual Assets Under Management (AUM) in mutual funds. Their collective investments have more than doubled in five years, rising from ₹4.59 lakh crore in March 2019 to ₹11.25 lakh crore by March 2024.
A significant contributor to this growth is the rise of SIPs, which have seen a 319.3 per cent increase in AUM for women between March 2019 and March 2024, according to AMFI.
A Shift Towards Financial Independence
These figures highlight an important transformation: women in India are no longer passive participants in investment decisions. Instead, they are taking control of their financial futures, making informed decisions, and building wealth with a long-term perspective. This shift not only empowers women individually but also contributes to a stronger and more inclusive financial ecosystem in India.
