The Indian stock market is trading 109 pts higher. On June 11, it is trading at 25,205. Amidst this volatility, a significant development is taking place beneath the surface — the rising influence of SIPs (Systematic Investment Plans) in mutual fund investments.
According to the latest report from the Association of Mutual Funds in India (AMFI), SIP inflows touched a record high of ₹26,688 crore in May 2025. This marks a slight but notable increase from ₹26,632 crore in April. This consistent growth in SIP investments highlights the growing confidence of retail investors in the mutual fund industry, particularly for long-term wealth creation.
The report also reveals that the number of SIP accounts has surged to 8.56 crore in May, compared to 8.38 crore in April. This means that in just one month, 18 lakh new SIP accounts were added. The total number of SIP accounts during the month stood at 9.06 crore, showing steady and widespread participation from investors.
In terms of assets, the Assets Under Management (AUM) under SIPs reached ₹14.61 lakh crore in May, rising from ₹13.90 lakh crore in April. SIPs now contribute over 20.24% of the total mutual fund industry AUM, reflecting how significant SIPs have become in driving industry growth.
Experts note that investors are increasingly favoring equity funds due to the potential for long-term returns. The SIP route allows them to invest consistently and cautiously, regardless of market ups and downs. People are avoiding lump-sum investments and loans, instead preferring steady monthly contributions to build wealth over time.
Interestingly, even though SIP inflows hit a record, the net inflow into equity mutual funds saw a decline in May. Equity fund investments stood at ₹1,913 crore — a sharp 22% drop from ₹24,269 crore in April. This is the lowest equity mutual fund inflow in the past year. However, the overall mutual fund industry AUM still witnessed a 4.85% growth, rising from ₹70 lakh crore in April to ₹72.2 lakh crore in May. This growth was primarily supported by the strength of SIPs and other types of funds.
May also saw the opening of 59 lakh new SIP accounts, though 43 lakh accounts were either closed or matured. This still left the total number of active SIP accounts at a strong 9.6 crore. The SIP stoppage ratio did see a slight increase, indicating that some investors are opting out, but overall, the trend points towards rising popularity and resilience of SIPs.
In conclusion, the latest AMFI data makes it clear: SIPs are becoming the backbone of retail investing in India. Their consistent growth, even during uncertain market conditions, signals a shift in investor mindset — from speculation to disciplined, long-term investing. As this trend continues, SIPs may well become the driving force behind the stock market’s sustained momentum in the months ahead.
Disclaimer:
The information provided in this blog is for educational and informational purposes only and should not be considered as investment advice. Readers are advised to consult with a certified financial advisor before making any investment decisions. Past performance of mutual funds or SIPs is not indicative of future results. The author and the platform do not hold any responsibility for financial losses or gains incurred based on the information provided in this article.
