Women investors have increased their allocation to equity mutual funds to 65% of their total assets, up from 40% in 2020. Data from ICRA Analytics also highlights strong participation from smaller towns, marking a significant shift in retail investment habits across India.
The composition of mutual fund portfolios held by women has seen a significant change over the last five years. According to recent data from ICRA Analytics, the share of equity-oriented schemes in these portfolios has climbed to 65% as of March 2025, compared to 40% in March 2020. This move represents a faster transition toward market-linked products than the general industry trend, where equity exposure moved from 27% to 45% during the same period.
This shift suggests that women investors are increasingly moving away from traditional saving methods toward equity funds for long-term wealth creation. A key part of this story is the geographic spread. Investors in smaller cities and towns, often referred to as B30 locations (Beyond Top 30 cities), are now showing a higher preference for equity schemes at 65.9%, compared to 39.8% in the larger T30 cities. While the top 30 cities still manage a larger portion of total industry assets, the data indicates that equity participation is widening well beyond India's major financial hubs.
Industry growth figures provide more context. Equity assets under management grew significantly to ₹39.2 lakh crore by August 2026, up from ₹12.3 lakh crore in August 2021. The number of equity accounts, or folios, has also surged to 18.9 crore. This growth has remained consistent even during periods of market volatility. For example, when equity assets dropped due to market corrections between December 2024 and February 2025, the number of investor folios continued to rise. This indicates that a large segment of retail investors is staying committed to their systematic investment plans despite short-term market declines.
However, this widespread move toward equity comes with new considerations for investors. As more retail capital from smaller cities flows into market-linked instruments, the impact of market volatility becomes relevant to a wider group of people. While long-term equity investing historically helps in wealth building, it also exposes new investors to market fluctuations that traditional savings do not. Therefore, understanding the risks associated with market cycles is becoming increasingly important for these participants.
Going forward, the sustainability of this trend will likely depend on continued investor discipline. Market participants will monitor monthly net inflows and the resilience of SIP contributions to gauge how well this expanded investor base holds up during extended market downturns. The broadening of the investor base is a structural positive, but the consistency of these inflows remains the primary factor for the industry's future growth.