Women hold just 25% of mutual fund folios, start investing 5 years later than men: Report

Women account for just 25% of mutual fund folios and typically begin investing five years later than men, with nearly half the average first investment size, according to a report titled ‘Unlocking Her Wealth: The Untapped Economy – Redesigning Financial Systems for Women from Inclusion Metrics to Ownership Outcome’ released by Lxme and EY India.

The report further highlights that women account for only one in four equity and mutual fund investors, one in four SIP accounts, and just 29% of first-time mutual fund folios.

Women begin investing later and with smaller initial stakes. The average woman makes her first mutual fund investment at the age of 35, compared to 30 for men. The first ticket size for women investors is nearly half that of men, at Rs. 6,500 versus Rs. 12,000.

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“Women enter markets later and with smaller stakes because the process must feel safe, understandable and aligned to their goals, yet most financial systems are not designed for them,” the report said.

The average age at first mutual fund investment for women is 35 years, whereas that for men is 30 years. The average age at first equity investment is 37 years for women investors versus 31 years for men investors.

The average ticket size at first MF investment for women investors is Rs. 6,500 and for men investors is Rs. 12,000. The average SIP amount at initiation for women investors is Rs. 2,300 per month against Rs. 3,800 per month for men investors.

A survey of 4,000 women across age groups, life stages and employment status in metros and Tier-2 and Tier-3 cities in India showed that 55% of respondents are aware of mutual funds, 15% are currently investing, and 18% intend to invest in mutual funds in the future.

“AMFI demographic data shows women’s AUM share rises materially where minimums are low and flows are goal-based.”

Around 23% of women investors account for equity investors (demat holders). The combined effect of these patterns is a persistent wealth gap. In India, women hold 40% less retirement wealth than men, compared with 26% across OECD economies. This gap persists globally even in countries with high female workforce participation because financial systems are built around linear careers, stable incomes and uninterrupted investing, conditions that align more closely with men’s life trajectories than women’s.

Bank account ownership
The report also stated that financial inclusion initiatives, particularly the Pradhan Mantri Jan Dhan Yojana, have transformed women’s access to banking. The share of women with bank accounts rose from 26% in 2011 to over 89% in 2024. However, many of these accounts function primarily as conduits for government transfers or cash withdrawals rather than as platforms for saving, transacting or investing.

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Property ownership
Women’s property ownership has expanded in recent years, rising from 37% in 2015–16 to 43% in 2019–21. Policy incentives such as lower stamp duty for female buyers have contributed to this rise. However, sole ownership remains uncommon, and joint titles frequently conceal continued male control over assets, limiting women’s effective property rights and decision-making power.

Other financial assets
The survey also showed that 47% of respondents are aware of stocks, 13% are investing and 15% intend to invest.

Nearly 80% of respondents are aware of fixed deposits, with 36% investing and 32% indicating a future intent to invest.

The report introduces India’s first Women’s Financial Prosperity Index (WFPI), which scores India at 28.1 out of 100. The index shows that while financial access for women has expanded rapidly, much of their journey towards long-term wealth creation remains structurally constrained.

“India has built one of the world's most extensive financial inclusion infrastructures. But inclusion without agency is an incomplete story. Our data shows that when women are given the right environment – confidence, community and products designed for their real lives – they don't just participate in markets, they lead them. This report is a call to the entire ecosystem: regulators, banks, fintechs and policymakers. The Rs. 40 lakh crore opportunity is not hypothetical. It is waiting. And unlocking it starts with designing for women, not around them,” said Priti Rathi Gupta, Co-Founder, Lxme.

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