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SIP Inflows Stay Strong, Bolster Mutual Funds Despite Market Weakness

Despite market consolidation, Systematic Investment Plan (SIP) inflows remained robust, supporting overall growth in the mutual fund industry. February 2026 saw SIP inflows of ₹299 billion and lumpsum inflows of ₹77.6 billion, contributing to active equity net inflows of ₹376 billion. While flows through existing schemes declined, inflows through New Fund Offers (NFOs) witnessed a sharp rise of nearly 396% month-on-month. For the financial year-to-date FY26, active equity net inflows have reached a substantial ₹4.1 trillion.

Key Points: SIP Flows Resilient, Support Mutual Fund Growth: Nuvama

  • SIP inflows resilient at ₹299 bn
  • Lumpsum inflows rose 4.6% MoM
  • Active equity AUM grew to ₹44.4 trillion
  • NFO inflows surged 395.8% MoM
  • FY26 equity inflows at ₹4.1 trillion
2 min read

Despite market weakness, resilient SIP inflows support mutual fund industry: Nuvama

Despite market consolidation, SIP inflows of ₹299 bn in Feb 2026 supported equity schemes. Active equity AUM grew to ₹44.4 trillion.

"While markets continue to consolidate, SIP flows remain resilient aiding industry volume growth - Nuvama Report"

New Delhi, March 11

Systematic Investment Plan inflows continued to remain resilient despite consolidation in Indian stock markets, supporting the overall growth in the mutual fund industry, according to a report by Nuvama.

The report stated that while markets have been witnessing consolidation, SIP flows have remained strong, aiding the industry's volume growth.

It stated, "While markets continue to consolidate, SIP flows remain resilient aiding industry volume growth".

According to the report, robust SIP inflows of Rs 299 billion in February 2026, though slightly lower by 3.7 per cent month-on-month (MoM), along with lumpsum inflows of Rs 77.6 billion, which increased by 4.6 per cent MoM, supported overall inflows into equity schemes.

As a result, active equity net inflows for February 2026 stood at Rs 376 billion, marking a decline of 2.1 per cent on a month-on-month basis.

The report further highlighted that active equity flows through existing schemes and new fund offers (NFOs) stood at Rs 336 billion and Rs 40 billion respectively.

While flows through existing schemes declined by 10.6 per cent MoM, inflows through NFOs witnessed a sharp rise of 395.8 per cent during the same period.

Market weakness during the month also had an impact on assets under management. The Nifty 50 index declined by 0.56 per cent on a month-on-month basis, which led to a relatively modest growth in total active equity assets under management (AUM).

According to the report, total active equity AUM grew by 1.6 per cent MoM to reach Rs 44.4 trillion.

Despite the short-term moderation in flows, the report highlighted strong inflows on a financial year-to-date basis. For the year-to-date FY26 period, active equity net inflows stood at Rs 4.1 trillion, which accounts for 11.1 per cent of the opening AUM.

The report further noted that for February 2026, active equity net inflows, excluding arbitrage, index funds and exchange traded funds (ETFs), declined by 2.1 per cent MoM to Rs 376 billion.

For the year-to-date FY26 period, SIP inflows into active equity schemes stood at Rs 3.2 trillion, while lumpsum active equity net inflows came in at Rs 916 billion, the report added.

- ANI

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Reader Comments

A
Aman W
Rs 44.4 trillion AUM! That's a massive number. Shows the growing maturity of Indian retail investors. We are moving from just FDs and gold to equities in a big way. Good for the economy in the long run.
R
Rohit P
The sharp 395% rise in NFO inflows is interesting. Are people chasing new funds thinking they'll perform better, or is it just smart marketing by AMCs? Sometimes sticking with proven existing schemes is wiser.
S
Sarah B
As an NRI, it's encouraging to see such data. It makes investing back home feel more stable. The SIP culture here is really strong compared to many other markets. Keep it up!
K
Karthik V
While the resilience is good, a small note of caution. We must ensure this isn't blind faith. Investors should periodically review their SIPs and asset allocation, not just "set and forget". Financial literacy is key.
N
Nisha Z
SIP of Rs 299 billion in just one month! 🙌 This is the power of small savings from millions of households. When markets dip, we are actually buying more units for the same amount. It's a win in the long term.

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