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Key Points

Systematic Investment Plan (SIP) inflows have reached an unprecedented high of Rs 26,688 crore in May, demonstrating strong retail investor confidence. The number of SIP accounts increased to 8.56 crore, indicating a growing trend of long-term investment strategies among Indian investors. Experts suggest this trend reflects evolving investor preferences towards equity and hybrid funds, driven by optimistic growth outlooks. The mutual fund industry continues to see robust growth, with total assets under management expanding and market participation becoming increasingly mainstream.

Key Points: SIP Inflows Hit Record Rs 26,688 Crore Amid Investor Surge

  • SIP accounts rise to 8.56 crore in May
  • Total mutual fund AUM crosses Rs 14.61 lakh crore
  • Equity mutual funds grow 4.85% month-on-month
2 min read

SIP inflows hit all-time high of Rs 26,688 crore in May

Mutual fund SIP investments reach all-time high in May, signaling growing retail investor confidence and long-term market optimism.

"SIP numbers over Rs 26,000 crore is very encouraging - Akhil Chaturvedi, Motilal Oswal AMC"

New Delhi, June 10

Systematic Investment Plan (SIP) inflows reached an all-time high of Rs 26,688 crore in May, from Rs 26,632 crore in April, according to data released by the Association of Mutual Funds in India (AMFI) on Tuesday.

The highest-ever inflow of SIP shows that people are investing in mutual funds from a long-term perspective.

According to the AMFI data, the number of contributing SIP accounts increased to 8.56 crore in May, from 8.38 crore in the previous month.

"Investor preferences are evolving. There’s a clear lean toward equity and hybrid funds, driven by long-term growth outlooks and a cautious stance on debt. Retail participation is also surging. The mutual fund revolution is becoming mainstream," said Narender Singh, smallcase Manager and Founder of Growth Investing.

The total assets under management (AUM) under SIP rose from Rs 13.90 lakh crore in April to Rs 14.61 lakh crore.

SIP AUM was around 20.24 per cent of the total AUM of the mutual fund industry in May --- from 19.9 per cent in April.

According to the AMFI data, the SIP stoppage ratio weakened in May. About 59 lakh SIP accounts were closed in May, while SIPs were closed or matured for 43 lakh accounts. The total number of SIP accounts in May was 9.06 crore.

“SIP numbers over Rs 26,000 crore is very encouraging, which implies that the fresh investment preferred route has been SIP than lumpsum,” said Akhil Chaturvedi, Executive Director and Chief Business Officer, Motilal Oswal AMC.

Meanwhile, Assets Under Management (AUM) for equity mutual funds rose to Rs 72.2 lakh crore in May, up 4.85 per cent from nearly Rs 70 lakh crore in April.

Investors are staying invested, but becoming selective. Equity flows are slowing, debt is stabilising, and hybrid/passive categories are thriving. Market momentum and SIP discipline continue to support AUM growth, said analysts.

- IANS

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Reader Comments

R
Rahul K.
This is fantastic news! SIPs are truly changing how middle-class Indians invest. My father never trusted mutual funds, but after seeing my SIP returns over 5 years, even he started a small monthly investment. The power of compounding is real! 💪
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Priya M.
While the numbers look impressive, I worry about new investors jumping in without proper knowledge. Many friends think SIPs = guaranteed returns. AMFI should run more financial literacy campaigns alongside these growth numbers.
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Sanjay T.
SIP is the best thing that happened to salaried Indians! Started with just ₹500/month in 2015, now investing ₹15k across 4 funds. The discipline it teaches is more valuable than the returns. Mutual funds sahi hai, indeed! 😄
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Ananya R.
Interesting to see hybrid funds gaining traction. With market volatility, many investors like me are balancing risk through hybrid SIPs rather than pure equity. Hope AMFI releases more data on category-wise SIP trends.
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Vikram J.
The 59 lakh SIP closures concern me more than the record inflows. Are people stopping due to short-term market fears or financial stress? We need sustainable participation, not just headline numbers.
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Neha P.
As a financial educator, I'm thrilled to see this growth! But remember folks - SIP isn't a 'set and forget' tool. Review your portfolio annually, increase SIP amounts with salary hikes, and stay invested for 7+ years for best results.

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