Markets

Women love equities but prefer the MF route

| Updated on: Mar 06, 2015
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8% growth in number of investors; made average lumpsum investment of ₹1.6 lakh

If you thought women investors are risk-averse, you’d be wrong.

A growing number of women are investing in equities through the mutual fund route.

Data sourced from mutual fund registrar and transfer agent CAMS on the investment pattern in equity MF schemes, reveal an 8 per cent rise in the number of women investing in equity mutual fund schemes in 2014, compared to 2013.

This is almost comparable to the 9 per cent increase in men who have invested in equity MFs.

Growing awareness

Not only has the number of women investors risen, they have also put in more money.

The average investment by women in both lump-sum and systematic investment plans has doubled in 2014 compared to a year ago. Women, on an average, made lumpsum investment of ₹1.6 lakh in equity schemes – nearly 6 per cent higher than the ₹1.5-lakh invested by men.

“The awareness about equities has certainly increased among women over the last few years,” says AK Narayanan, President, IFA Galaxy, a Chennai-based association of independent financial advisors.

Concerns over safety

“Working women, who are contributing to their family finances, are showing interest in learning things and want to look beyond the traditional FDs.

“They are now willing to take some risk, since they are convinced that the returns will be commensurate,” he explains. Even as women have raced ahead of men in terms of their average quantum of investment, women equity MF investors are fewer compared to men. Women investors accounted for just a fourth of the total equity MF folios in 2014, similar to the 2013 levels. “Even as more women are enquiring about these schemes, some are concerned about the safety of principal,” says SEBI- registered financial planner Sridevi Ganesh.

“With increased awareness, this is slowly changing. But lot more needs to be done with respect to educating women investors about equity schemes,” she adds.

Interestingly, even among the women who have invested in equity schemes, those above the age of 40 have shown more interest compared to young women.

Working women

In 2014, women aged between 40 and 60, accounted for almost half the women equity MF investors.

Working women seemed more aggressive than homemakers.

Employed women accounted for almost three-fourth of the total women investors.

Among them, professionals such as doctors, lawyers and teachers account for almost 45 per cent of the total women equity MF folios.

Published on January 24, 2018

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