Investment preferences of women living in top 30 cities of India have changed over the past few years, with more and more women investors embracing new investment ways like mutual funds, stocks and even startups, according to a report.
Uncovering an intriguing geographical distinction in investment choices, Axis Mutual Fund in its report has said that women in B30 cities (beyond the top 30) show a preference for traditional investments such as fixed deposits and gold, apart from mutual funds. Conversely, their counterparts in T30 cities (beyond the top 30) are embracing newer investment avenues like mutual funds, stocks, and even startups, it said.
“This highlights a nuanced understanding of investment options among women across diverse demographics,” said the report by Axis Mutual Fund, one of the fastest growing fund houses in India. The MF house analysed data from over 1 crore existing Axis Mutual Fund customers and conducted a nationwide survey, to unveil an interesting study titled “Women Investment Behaviour Report 2024”.
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72% of women investors now make independent investment decisions
The findings of the study indicate that nearly 72% of women investors now make independent investment decisions. The report further highlights the proactive approach undertaken by women investors to achieve financial autonomy and growth, underscoring their commitment to long-term investing.
Addressing the significance of the study, B Gopkumar, MD & CEO, Axis AMC asserted, “The mutual fund industry is undergoing a dynamic shift as more people, particularly women, embrace investing in mutual funds as part of their financial strategy. Our research into the investment patterns of Axis MF investors reveal that women constitute 30% of Axis Mutual Fund customer base and hold 35% of the total AUM. Understanding the evolving investor landscape, especially regarding women’s preferences, is crucial for continued growth and our report aims to shed light on this aspect.”
By analysing their distinct needs and investment behaviours, Axis AMC aims to refine our offerings to empower their financial journeys. This is fuelled by innovative digital tools and comprehensive education programs.”
Here are some key insights from the report:
Better persistency and long-term vision:
Shattering stereotypes, women investors are emerging as strong proponents of long-term investing. The report finds they exhibit a strategic approach, demonstrated by both higher amounts invested (25%) per woman investor and higher corpus on an average by a female investor (37%) compared to men. This translates to a long-term vision, with women showing 22% higher persistency in their mutual fund investments over a five-year period.
This preference for long-term wealth building fosters financial security and stability, not just for individual households but also for the broader economy.
Embracing the digital future:
The digital revolution is transforming the mutual fund industry, and women are at the forefront of this change. The data is striking: in just five years, the proportion of Axis MF women investors using fintech channels has leapt from 14% to 55%. This surge highlights the pivotal role of technology in making financial services more accessible.
The pandemic further accelerated this shift, exemplifying the versatility of women in adapting to market fluctuations. Digital tools not only simplified investing but also broadened reach for women across regions. Coupled with educational efforts, these technological strides have equipped women with the knowledge to make savvy investment choices, significantly boosting their participation in the mutual fund segment.
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Independent decision makers:
Dispelling the stereotype of passive women investors, the study reveals that a remarkable 71.9% women make independent investment decisions. The trend more pronounced in the younger generations, with 75% of women aged 25-34 and 70% aged 35-44 taking control of their financial futures by making their own investment choices. This signifies a powerful shift towards financial empowerment and autonomy for women across all demographics, paving the way for a more inclusive and diverse investment landscape.
Investment preferences:
The report uncovers an intriguing geographical distinction in investment choices. Women in B30 cities (beyond the top 30) show a preference for traditional investments such as fixed deposits and gold, apart from MFs. Conversely, their counterparts in T30 cities (beyond the top 30) are embracing newer investment avenues like mutual funds, stocks, and even startups. This highlights a nuanced understanding of investment options among women across diverse demographics.
Ashish Gupta, CIO, Axis AMC further added that, “The findings of our ‘Women Investment Behaviour Report 2024’ paint a truly inspiring picture. Women participation in the investor base is rapidly rising with demonstrably high independence and increasing sophistication. They have a data-driven approach and have quickly adopted digital tools for their investing. Their focus on long term goals and consistency is driving impressive investment outcomes for them. The fact that our 2.2 million women investors have made an average gain of over Rs. 80,000 speaks volumes about their growing financial acumen.”
