In today’s modern business world, the disparity between men and women in terms of business ownership is predominantly skewed towards men. In India, only 13.76% of women entrepreneurs exist (Source - Sixth Economic Census, conducted in 2014). This distribution not only reflects gender disparities but also underscores the need for a paradigm shift. A significant opportunity for women to break this barrier and make a mark in the business world could be starting a mutual fund distribution business. This business doesn’t need a huge capital investment and requires values and skills like effective communication, empathy, and attention to detail - qualities that women are often associated with.
Moreover, this business also offers flexibility, allowing women to navigate both professional and personal commitments. The number of female mutual fund distributors is only about 42,000 as of December 2023 (Source - Indian Express). However, with increasing financial literacy and the necessary soft skills, anyone can start this business. By entering into the distribution business, women can contribute to reshaping the business ownership landscape, cultivating inclusivity, and becoming catalysts for a more equitable distribution of entrepreneurial opportunities. Let’s look at some of the reasons why a distribution business can be a good fit for women.
7 benefits of pursuing MF distribution for women
- Flexible working hours - A mutual fund distribution business can be done from anywhere at any time. The business can be conducted online without the need for any office space. This flexibility can be very important for women as they play many roles, like being a wife, mother, or daughter. Through the mutual fund distribution business, women can not only focus on their business, but can also cater to the other responsibilities of life.
- Financial independence - In today’s constantly changing world, financial independence is of utmost importance. Financial independence is important so that women can make their own decisions in life, break stereotypes, build self-confidence, and prepare for unforeseen circumstances. With a mutual fund distribution business, women can generate income on their own, allowing them to take a step towards financial independence.
- Better understanding of unique situations -Generally, women handle the day-to-day household finances. A woman is more likely to understand the unique challenges faced in managing routine expenses. Moreover, a woman mutual fund distributor can effectively help quantify financial needs and positively impact overall financial savings and family behaviour.
- Unlimited income potential - The earning in a mutual fund distribution is based on a unique commission-based system called ‘trail commission’. Trail income is directly proportional to the market value of investors' portfolio. This will not only motivate the distributor to work in the best interest of the investor but also work to their full potential based on skill and business acumen.
- Sense of ownership - With a distribution business, women can feel a sense of ownership, which makes them empowered. Becoming a mutual fund distributor is more like a profession that offers the freedom of entrepreneurship. A certified distributor can start her own business with her own mission, vision, and values, hence giving her the opportunity to be her own boss.
- Sense of fulfilment - A mutual fund distribution is a wholesome business since you will not only be working towards your own financial independence, but you will be helping numerous other people realise their financial needs and take control of their future. Particularly for women, engaging in mutual fund distribution offers a unique opportunity, as it not only fosters their financial independence but also enables them to empower fellow women in navigating their financial journeys, fostering a community of strength and resilience.
We strongly urge our female readers to consider mutual fund distribution as an enriching and purposeful career path. We firmly believe that increased female participation in this field can yield numerous advantages. Beyond the evident prospects for business and career growth, female distributors have the potential to inspire other women to engage in wealth management, acquire essential financial literacy and confidence in decision-making, and strive towards achieving financial independence.
