Equity Participation Rises Among Women Investors and B30 Cities Amid Steady Mutual Fund Flows: ICRA Analytics

Women Investors Increase Allocation to Equity Mutual Funds

Women investors are increasingly allocating a larger share of their mutual fund portfolios to equity-oriented schemes, according to an analysis by ICRA Analytics.

The share of equity mutual funds in women-led mutual fund assets increased from 40% in March 2020 to 65% in March 2025.

This means equity became the dominant asset class within women-led mutual fund portfolios during the five-year period.

The shift has occurred alongside a broader increase in equity allocation across India's mutual fund industry. The overall share of equity investments in the mutual fund industry's assets increased from 27% to 45% during the same period.

B30 Cities Show Stronger Equity Orientation

The expansion of equity participation is not limited to women investors.

Investors in India's B30 locations, referring broadly to cities and centres beyond the top 30 mutual fund markets, have a higher proportion of their mutual fund assets invested in equity-oriented schemes than investors in T30 locations.

According to AMFI industry data cited by ICRA Analytics, as of July 2026, equity-oriented schemes accounted for:

LocationEquity Share of Mutual Fund AUMB30 locations65.9%T30 locations39.8%

Although T30 cities continue to account for a larger share of India's overall mutual fund assets, the higher equity orientation in B30 locations indicates increasing penetration of equity mutual funds in smaller cities and towns.

Equity Mutual Fund AUM Rises to Rs 39.2 Lakh Crore

The broader investor participation comes against a backdrop of substantial growth in equity mutual fund assets.

Equity mutual fund AUM increased from Rs 12.3 lakh crore in August 2021 to Rs 39.2 lakh crore in August 2026.

Over the same five-year period, equity mutual fund folios increased from approximately 7.3 crore to 18.9 crore.

The increase in folios is significant because it indicates that the expansion in equity mutual fund participation is not being driven only by larger existing investors. More investment accounts have also been added over the period.

Equity Folios Continue Growing During Market Corrections

One of the notable findings in the ICRA Analytics analysis is that equity mutual fund folios have continued to increase even during periods when equity AUM declined.

Between December 2024 and February 2025, equity AUM fell from Rs 30.6 lakh crore to Rs 27.4 lakh crore.

During the same period, however, equity folios increased from 15.7 crore to 16.2 crore.

A similar pattern was observed between February and March 2026. Equity AUM declined from Rs 35.4 lakh crore to Rs 32.0 lakh crore, while the number of folios continued to rise.

This suggests that market corrections did not result in a corresponding decline in the number of investors holding equity mutual fund investments.

Equity AUM Grows 18.5% in One Year

The latest annual data also shows continued expansion.

Equity mutual fund AUM increased approximately 18.5% from Rs 33.1 lakh crore in August 2025 to Rs 39.2 lakh crore in August 2026.

Equity folios rose around 9.2%, from 17.3 crore to 18.9 crore during the same period.

The growth indicates that both assets and the number of investor accounts expanded over the year, although changes in market valuations also influence AUM.

Equity Mutual Funds Continue to Receive Inflows

Investor allocation towards equity schemes has also remained positive.

According to ICRA Analytics, equity mutual funds recorded net inflows of Rs 29,329 crore during the period covered by its latest analysis.

The continued inflows indicate that investors have continued allocating money to equity-oriented mutual funds despite changing market conditions and periodic corrections.

This is relevant because AUM can rise or fall because of market movements, whereas sustained net inflows provide a clearer indication of fresh investor allocation.

Women Are Becoming a Larger Part of Equity Participation

The increasing equity share in women-led portfolios points to a change in how women investors are using mutual funds.

In March 2020, equity accounted for 40% of assets in women-led mutual fund portfolios. By March 2025, the figure had risen to 65%.

The increase of 25 percentage points means equity moved from being a smaller component of these portfolios to becoming the predominant asset class.

ICRA Analytics said the trend represents a broadening of equity participation beyond the traditional investor base.

Smaller Cities Are Showing Strong Equity Preference

The B30 data provides another indication that equity mutual funds are spreading beyond India's major financial centres.

As of July 2026, equity-oriented schemes represented 65.9% of mutual fund AUM in B30 locations, significantly higher than the 39.8% recorded in T30 locations.

This does not mean B30 investors have more mutual fund assets overall than T30 investors. T30 locations continue to contribute the larger share of total industry AUM.

Instead, the data shows that equity represents a larger proportion of the mutual fund assets held in B30 locations.

Mutual Fund Participation Is Becoming More Geographically Diverse

Historically, mutual fund investment in India has been concentrated in large urban and financial centres.

The stronger equity orientation in B30 locations suggests that mutual fund participation is becoming more geographically distributed.

Several factors could support this expansion, including:

• Greater digital access to mutual fund platforms

• Increased financial awareness

• SIP-based investing

• Wider distribution networks

• Growth of online investment platforms

• Greater awareness of market-linked investments

The ICRA Analytics data specifically highlights the increasing equity participation in smaller locations rather than attributing the trend to any single factor.

Equity Folios Reach Nearly 19 Crore

The number of equity mutual fund folios has increased substantially.

Equity folios stood at approximately 7.3 crore in August 2021 and reached 18.9 crore by August 2026.

The figure includes mutual fund accounts rather than necessarily representing an equal number of unique individual investors, since one investor can hold multiple folios.

Nevertheless, the increase indicates substantial expansion in the number of equity mutual fund investment accounts.

Market Corrections Have Not Stopped Participation

The ICRA Analytics analysis also points to an important distinction between market value and investor participation.

When equity markets correct, AUM can fall even if investors continue contributing money.

This is visible in the periods identified by ICRA Analytics, when equity AUM declined but the number of folios continued to increase.

Such a pattern can occur when investors continue investing through SIPs or make fresh investments despite temporary declines in portfolio values.

Five-Year Return Comparison

As of August 31, 2026, ICRA Analytics reported that the Nifty 50 TRI delivered a five-year CAGR of 8.32%, while the average return of the equity mutual fund category was 12.84%.

These figures represent historical performance and do not indicate what investors can expect in the future. Mutual fund returns can vary depending on market conditions, fund strategy, portfolio composition and investment timing.

What the Trend Means for Mutual Fund Investors

The data indicates that India's equity mutual fund investor base is becoming broader in two important ways.

First, women are allocating a greater proportion of their mutual fund assets to equity.

Second, investors in smaller cities and towns are showing a relatively high equity orientation.

Together, these trends suggest that equity mutual funds are increasingly becoming part of portfolios outside the traditional large-city investor base.

More Investors Does Not Mean Lower Investment Risk

The expansion of equity participation does not eliminate the risks associated with market-linked investments.

Equity mutual funds can experience significant fluctuations in value. A growing number of investors also does not guarantee positive returns.

Investors should consider their investment horizon, financial objectives, risk tolerance and asset allocation before increasing equity exposure.

The ICRA Analytics data describes participation trends rather than providing a recommendation to invest in equity mutual funds.

What Should Investors Watch Going Forward?

Several indicators will help determine whether the expansion in equity participation continues:

• Growth in equity mutual fund folios

• Monthly equity-fund inflows

• SIP contribution trends

• Participation from B30 locations

• Equity allocation among women investors

• Market volatility

• Household financial savings

• Mutual fund distribution beyond major cities

Continued folio growth during market corrections would indicate that investors are maintaining participation even when market valuations fluctuate.

Key Numbers at a Glance

IndicatorFigureWomen-led equity share, March 202040%Women-led equity share, March 202565%Overall industry equity share, March 202027%Overall industry equity share, March 202545%B30 equity share of MF AUM, July 202665.9%T30 equity share of MF AUM, July 202639.8%Equity MF AUM, August 2021Rs 12.3 lakh croreEquity MF AUM, August 2026Rs 39.2 lakh croreEquity folios, August 20217.3 croreEquity folios, August 202618.9 croreEquity MF net inflowsRs 29,329 croreNifty 50 TRI five-year CAGR8.32%Equity fund category average five-year return12.84%

Figures are based on ICRA Analytics and the AMFI industry data cited in its analysis.

What Happens Next?

The continued expansion of equity mutual fund participation will depend on market conditions, investor awareness, household savings patterns and the availability of investment products across different regions.

The growing participation of women and investors in B30 locations could further diversify India's mutual fund investor base.

At the same time, future market corrections will provide another test of whether the growth in equity folios continues even when portfolio values decline.

Bottom Line

Equity mutual fund participation is expanding across both investor groups and geographies, according to ICRA Analytics.

The share of equity in women-led mutual fund portfolios increased from 40% in March 2020 to 65% in March 2025, while equity-oriented schemes accounted for 65.9% of mutual fund AUM in B30 locations in July 2026, compared with 39.8% in T30 locations.

Meanwhile, equity mutual fund AUM rose from Rs 12.3 lakh crore in August 2021 to Rs 39.2 lakh crore in August 2026, while equity folios increased from 7.3 crore to 18.9 crore.

The figures point to a broader equity investor base, with women and investors from smaller cities playing an increasingly visible role in India's mutual fund market. However, participation growth should not be confused with lower investment risk, and historical returns do not guarantee future performance.