The investment research group has published the findings of a new report examining gender diversity in India's fund management sector.

Assets overseen by female fund managers in India outperformed benchmarks over one-, three- and five-year periods, according to new research by Morningstar. The findings, published yesterday, coincided with the International Women's Day range of events highlighting the need to close gender pay and seniority gaps in countries around the world.

Although female fund managers are “vastly outnumbered” by their male counterparts in India, 86 per cent of assets under their watch outperformed the benchmark/peer group average on a five-year basis, data from the investment research giant shows. Nearly two-thirds (61 per cent) outperformed on a one-year basis, and 81 per cent beat benchmarks on a three-year basis. 

Morningstar found that the number of primary and secondary female fund mangers rose from 18 to 24 over the past year. While this figure is up by a third, the gender holds just 8 per cent of roles in India’s fund management sector, collectively managing just 15 per cent of assets in open-ended funds. 

These figures are below global standards, Morningstar pointed out, adding that many other Asian countries account for the highest ratios of women to men in the mutual fund industry. 

“The number of women in fund management in India has been gradually going up over the years, but the numbers tell us that we still have a long way to go,” the report said. “While most of the fund houses have recognised the importance of diversity and have been hiring women fund managers, however, there is a need to set the tone at the top level so that we can get to parity with men in the mutual fund Industry at a higher pace.”