Women investors have sharply increased the share of equity in their mutual fund portfolios, while investors in smaller cities and towns are also showing a higher allocation to equity-oriented schemes than those in larger urban centres, according to data from ICRA Analytics and the Association of Mutual Funds in India (AMFI).
The share of equity funds in women-led assets under management (AUM) rose from 40% in March 2020 to 65% in March 2025, making equity the largest asset class in their mutual fund portfolios. Over the same period, equity’s share in the overall mutual fund industry increased from 27% to 45%, ICRA Analytics data showed.
A similar gap is visible between India’s larger and smaller cities. AMFI’s Industry Trends report for July 2026 showed that equity-oriented schemes accounted for 65.9% of mutual fund AUM in B30 locations, compared with 39.8% in T30 locations.
Here, T30 refers to the top 30 cities by mutual fund assets, while B30 covers locations outside these 30 centres. Although T30 cities continue to account for the larger share of the industry’s overall AUM, the higher equity allocation in B30 locations indicates a greater share of equity-oriented assets among investors outside the country’s biggest mutual fund markets.
The equity investor base has also expanded steadily over the past few years. Equity mutual fund AUM rose from ₹12.3 lakh crore in August 2021 to ₹39.2 lakh crore in August 2026, while equity fund folios increased from 7.3 crore to 18.9 crore.
Over the 12 months to August 2026, equity AUM rose about 18.5%, from ₹33.1 lakh crore to ₹39.2 lakh crore. Folios increased around 9.2%, from 17.3 crore to 18.9 crore during the same period.
The growth in folios has continued even during periods when equity AUM declined. Between December 2024 and February 2025, equity AUM fell from ₹30.6 lakh crore to ₹27.4 lakh crore, while the number of folios increased from 15.7 crore to 16.2 crore.
A similar pattern was seen between February and March 2026, when equity AUM declined from ₹35.4 lakh crore to ₹32 lakh crore, even as folio counts continued to rise. Monthly data from MFI 360 Explorer shows equity folios increased every month between April 2025 and August 2026, rising from 16.50 crore to 18.92 crore, although AUM declined in some months.
Over the long term, the average equity mutual fund category also delivered higher returns than the Nifty50 TRI. As of August 31, 2026, the Nifty50 TRI had generated a five-year CAGR of 8.32%, compared with 12.84% for the average equity fund category.
Equity mutual funds recorded net inflows of ₹29,329 crore in August 2026, indicating that fresh money continued to enter equity-oriented schemes despite fluctuations in market levels.
Ashwini Kumar, Senior Vice President and Head, Market Data, ICRA Analytics, said the increasing equity allocation among women investors and those in B30 locations points to a broadening of participation across investor segments and geographies.
“Notably, this expansion is happening alongside continued growth in equity folios across different market cycles. The data suggests that equity mutual funds are increasingly becoming part of a wider set of investor portfolios beyond the traditional investor base and larger urban centres,” Kumar said.
Also read: From gold to equities: How Indian women are changing their investment habits