69% of All Open-Ended Mutual Funds Managed By Women Outperformed Their Peers, Says Report

Just 32 of 399 or 8 per cent of fund managers in India are women, but they handle around 12 per cent of the total assets under management (AUM) of the industry, according to the Morningstar Women Fund Managers Report 2022 released recently. These are spread over 19 fund houses.

The report said that back in 2017 there were just 18 women fund managers, so the number of women fund managers is growing. “With a meagre 8 per cent representation, women still remain drastically under-represented among the ranks of mutual fund managers. That said, the representation in percentage terms has been on the rise over the last two years albeit marginally,” said the report.

Quantum of Management

The AUM of the entire mutual fund industry saw year-on-year growth of 24.6 per cent with total assets at approximately Rs 38.01 lakh crore as of January 31, 2022, up from Rs 30.5 lakh crore a year ago. Out of Rs 38.01 lakh crore, the 32 women fund managers manage approximately Rs 4.55 lakh crore.

Women fund managers manage a range of fund categories. In the fixed-income category, women managed most of the assets—around Rs 2.19 lakh crore representing 48 per cent of the total assets (Rs 4.55 lakh crore).

Women fund managers managed Rs 0.81 lakh crore or 18 per cent of the total short-term funds, including money market, liquid and overnight funds.

In the equity funds category, women managed Rs 1.12 lakh crore worth of assets, representing 25 per cent of the total assets of Rs 4.55 lakh crore.

Further, women manage 9 per cent of the assets (Rs 0.39 lakh crore) in various solution-oriented schemes. 

Fund Performance

The report also highlighted how funds managed by women fund managers have performed compared to their respective peers.

While 69 per cent of the total AUM for open-ended schemes outperformed their peer funds on a yearly return basis, 96 per cent of the total AUM outperformed their peers over three years. The figure was 69 per cent for five years.

What Is Their Experience Level?

The 32 women fund managers are spread across 19 fund houses. Of these 32, nine women fund managers have been consistently managing funds for over five years. Eight women fund managers have been managing funds for two to five years. And, lastly, 15 women fund managers have been managing or co-managing funds for less than two years.