In 2024, women in India have significantly increased their participation in mutual fund investments, achieving a remarkable 100% year-on-year (YoY) growth. Insights from Groww highlight this substantial rise, underscoring the growing financial empowerment of women across the nation. The surge is not limited to urban centres, as smaller cities are playing a pivotal role in driving this change.
Mutual Fund growth in Tier IV cities
Smaller cities lead the charge
Tier IV cities have outpaced their urban counterparts with a YoY growth of over 140% in mutual fund participation. This substantial increase is narrowing the urban-rural investment gap, reflecting broader financial inclusion. While metro and Tier I-III cities also recorded over 100% growth, the surge in smaller cities demonstrates a significant shift in financial activity.
Emerging hubs for women investors
Major metros like Delhi, Mumbai, and Kolkata continue to lead in the number of women mutual fund investors. However, non-metro cities such as Pune, Lucknow, Nagpur, Ahmedabad, and Jaipur are becoming key contributors. These cities are redefining the investment landscape and signalling a broader geographical distribution of financial literacy.
Systematic Investment Plans (SIPs) drive wealth creation
Record growth in SIP contributions
Systematic Investment Plans (SIPs) have become increasingly popular among women investors, with several notable trends:
- Higher ticket sizes: The average SIP amount now exceeds ₹2,500, indicating a focus on long-term wealth creation.
- Increased contributions: Women’s contributions have grown by 10-15% YoY and are 25% higher than men’s.
- Rising participation: Women now account for 25% of SIP investors, compared to 20% in 2023.
Young women take the lead
Women under 30 are leading SIP adoption, with their participation doubling YoY. Those aged 30-40 have seen a 2.5 times increase, while women over 40 have doubled their involvement.
Enablers of financial growth
A Groww spokesperson attributed the trend to several factors, including greater financial literacy, access to trustworthy investment platforms, and simplified processes facilitated by Aadhaar infrastructure and UPI Autopay. These advancements have made disciplined investing more accessible and appealing to women investors across demographics.
The doubling of women’s participation in mutual funds marks a pivotal moment in India’s financial landscape. As more women from diverse age groups and geographies embrace disciplined investing, the trend signals a robust shift towards economic empowerment and financial independence.
