The AUM of women investors in Karnataka has grown 4.1x in the last five years: reveals Axis Mutual Fund study

Key Highlights:

· While 70.4% women seek advice from professionals, friends, and family, nearly 72% women take the final call on their investment journey.

· 25% higher amount invested per woman investor with average investment corpus 37% higher than men, indicating growing confidence and a strategic approach to investing.

· Survey respondents prioritized past performance as a crucial factor influencing their mutual fund investment decisions.

5 July, 2024 | Karnataka: Axis Mutual Fund, one of the fastest growing fund houses in India, analysed data from over 1 crore existing Axis MF customers and conducted a nationwide survey, to unveil an interesting study titled “Women Investment Behaviour Report 2024”.

In the last five years (31st Mar 2019 to 31st Dec 2023), women investors have grown 3.6x in Karnataka. In the same time period, the AUM of women investors has grown 4.1x in Karnataka.

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.”

Key Insights from the report:

A) 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.

B) 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.

C) 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.

D) 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.”

Overall, this report demonstrates the remarkable transformation of women in finance. Their growing confidence and strategic approach, evident in their long-term investment focus and digital adoption, are not just fuelling their own financial success but also contributing significantly to the broader economy.

As they continue to navigate and reshape the investment landscape, empowering women investors remains paramount. Axis Mutual Fund is dedicated to providing them with the tools, resources, and educational opportunities they need. Our commitment is to ensure they have the confidence and knowledge to make informed financial decisions and achieve their long-term goals.