Women investors are making an increasingly significant impact in the mutual fund industry, not just in terms of participation but also in terms of the volume of investments they are making. A recent report by PhonePe Wealth, which analyzed data from one lakh women investors in 2024, has revealed some striking trends that highlight the growing financial independence and confidence of women in India. According to the findings, women are contributing more to mutual funds than men, with their average systematic investment plan (SIP) contributions being 22% higher. Even more impressive is the fact that their lump sum investments are 45% greater than those made by men, indicating a willingness to take bold financial decisions.
One of the most notable aspects of this trend is that a majority of these women investors—72% to be precise—are from smaller cities, often referred to as beyond the top 30 (B30) cities. This signifies a shift away from the traditional notion that mutual fund investments are primarily driven by individuals from metro cities. More women from places like Varanasi, Ranchi, Dehradun, Guwahati, and Vadodara are embracing wealth creation, demonstrating that financial literacy and investment awareness are spreading across the country. It is a strong indicator that investing is no longer an exclusive domain of big-city professionals but is gaining traction among women from diverse backgrounds and geographies.
Historically, there has been a perception that women prefer safer investment avenues such as fixed deposits, gold, or savings accounts. However, the latest data presents a different reality. Nearly half of all women investors are opting for contra or value funds—investment strategies that require confidence, patience, and a keen understanding of market trends. Additionally, many women are also investing in flexi-cap, mid-cap, small-cap, and thematic funds, all of which come with a relatively higher degree of risk. This demonstrates that women are becoming more comfortable with market volatility and are making calculated decisions to maximize their long-term financial growth.
Commenting on these changing investment patterns, Nilesh D Naik, Head of Investment Products at Share.Market (PhonePe Wealth), stated, “We acknowledge the increasing participation of women investors and their evolving role in the financial landscape. Our data shows that women investors are not just stepping into the world of investing but are doing so actively and strategically. Today, we see that women investors are financially aware and independent, diversifying their portfolios, and making investments with a long-term perspective.”
Another key takeaway from the report is that younger women are driving this investment revolution. A staggering 74% of women investors are aged 35 or younger, with nearly 29% falling within the 26-30 age bracket. This indicates that financial literacy is improving among young women, who are now starting their investment journeys much earlier in life. Most of them are taking a disciplined approach to investing, with 90% choosing SIPs as their preferred mode of investment. The average SIP contribution among women is ₹1,300, which is significantly higher than that of men. This suggests that women investors are not only committed to wealth creation but are also taking a structured and disciplined approach to growing their financial portfolios.
A particularly interesting insight from the report is the level of active engagement shown by women investors. Unlike the stereotype that women take a passive role in financial matters, the data reveals that 44% of women’s investment transactions occur during market hours, between 9 AM and 4 PM. This suggests that women are closely tracking market trends, making informed decisions, and actively managing their portfolios rather than simply relying on financial advisors or family members.
This shift is more than just a short-term trend—it is a fundamental transformation in the way women approach financial independence. The traditional perception that women shy away from making financial decisions is rapidly changing. More women are taking charge of their financial futures, making informed investment choices, and demonstrating a clear understanding of risk and reward. Their increasing participation in mutual funds, along with their preference for higher-risk investment instruments, is reshaping the financial landscape in India.
As financial literacy continues to improve and digital platforms make investing more accessible, the number of women investors is only expected to grow in the coming years. With women now playing a more active role in wealth creation, their influence on financial markets will continue to expand. This marks the beginning of a new era where women are no longer just participants in the investment world—they are leaders, decision-makers, and game-changers in the journey toward financial empowerment.
