Does India’s Asset Management Industry Need More Women?

SEBI lists 405 firms that have Portfolio Management Services licences. PMS investments has touched 26.7 lac crores. These numbers have only grown over the last few years.

While the total quantum of Investments in Portfolio Management stands at 26.7 lac crores, only a small fraction of that is in by funds run by women.  Morningstar recently carried an article detailing the drastic underrepresentation of women fund managers in India.

The situation in Wealth Management is better than in Asset Management. According to a report by Catalyst, women constitute about 23% of the global wealth management industry’s workforce, with 15% holding executive-level positions. India has 10-15% of women representation in the industry. While these numbers are low, they are better than those of the Asset Management industry.

There are several reasons for this under-representation, including historical gender biases, lack of mentorship opportunities, and a dearth of role models for young women to aspire to. The fact that Radhika Gupta of Edelweiss, Vishaka Mulye of Aditya Birla Money and Renuka Ramanathan of Multiples Alternate Asset Management have carved very successful careers for themselves is an inspiration for aspiring and ambitious women in finance. The Morningstar study points out that ‘Of the total open-end assets managed by women fund managers, 82% of the AUM outperformed the peer group average on a one-year basis, 93% of the AUM outperformed on a three-year basis, and 99% of the AUM outperformed on a five-year basis.’

The Asset Management industry in India is rapidly evolving, with more women entering the industry and taking on leadership positions. The industry has also begun to recognize the importance of diversity and inclusion, and many firms are actively working to promote gender equality. Many organizations are actively working to create more opportunities for women in the field, including mentorship programs, training initiatives, and recruitment drives. Additionally, there is a growing focus on promoting financial literacy and empowerment among women, which can lead to greater participation in the industry.

In the next ten years, we can expect to see a significant increase in the number of women in Asset Management in India. As more women enter the industry and gain experience, they will serve as role models and mentors for younger women, creating a cycle of representation and inclusion. Additionally, companies that prioritize diversity and inclusion will have a competitive advantage, as research has shown that diverse teams perform better and are more innovative. To achieve this, it is crucial to create a supportive ecosystem that encourages and enables women to pursue careers in Asset Management. This can include initiatives to address the gender pay gap, flexible work arrangements, and a culture that values diversity and inclusion.

In conclusion, while the under-representation of women in Asset Management in India is a challenging issue, there are reasons to be hopeful for the future.