'The Rs 30,954 crore inflows recorded in May 2026 reflects around 16 per cent year-on-year rise.'
Systematic investment plans (SIPs) are growing their share of active equity mutual fund (MF) assets as investors continue to invest through the staggered route.
This is despite the post-pandemic bull run, which triggered the SIP growth, losing momentum over the past two years.
SIP-linked assets accounted for 40.4 per cent of active equity assets under management (AUM) at the end of May 2026, up from 40 per cent at the end of December 2025 and 38.8 per cent a year earlier.
Key Points
- Despite slower monthly inflows, SIPs continue attracting retail investors and remain a key source of mutual fund investments.
- Active equity SIP assets reached Rs 14.6 trillion against total active equity assets under management of Rs 36.1 trillion.
- Industry data shows SIP inflows remain above Rs 30,000 crore monthly, supported by rising folios and expanding retail participation.
SIP AUM Growth
The share crossed the 40 per centN mark for the first time in January 2026 and has continued to inch up since then, even as SIP inflows have moderated in recent months.
The active equity SIP AUM stood at Rs 14.6 trillion in May 2026, while the total active equity AUM was Rs 36.1 trillion, shows industry data accessed by Business Standard.
SIPs are the preferred investment route for retail investors, particularly for active equity schemes.
The steady rise in SIPs over the past six years has made them a key source of inflows for MFs.
They are a support for the domestic equity market during periods of sustained foreign portfolio investor (FPI) selling.
Retail Investor Participation
According to MF executives, the resilience in SIP inflows in the past two years is an indication of growing investor maturity and rising retail participation.
"The monthly SIP inflows have remained above Rs 30,000 crore for the past three months. The Rs 30,954 crore inflows recorded in May 2026 reflects around 16 per cent year-on-year rise," said Saugata Chatterjee, president and deputy CEO, Nippon India MF.
"Importantly, a similar growth trend is visible in other metrics like industry's average AUM and folio counts, indicating broad-based and deepening retail participation," added Chatterjee.
"In addition, the industry has seen a net addition of about 77 million SIPs since May 2025, further strengthening the retail base," Chatterjee explained.
SIP Inflows Moderate
However, SIP inflows and net new account openings have seen a slowdown in recent months.
Monthly SIP inflows have declined for two consecutive months, falling from a record Rs 32,087 crore in March to Rs 30,954 crore in May.
At the same time, SIP account closures outpaced new registrations in March and April.
Despite the slowdown in recent months, the inflows and total number of active accounts in May 2026 are up over 15 per cent compared to a year earlier.
Market Recovery Boost
The industry expects the SIP growth momentum to gather steam in the coming months as West Asia tensions have eased and the market recovery has lifted equity MF performance.
"We certainly expect to see interest and momentum coming back into the market," said Venkat Chalasani, chief executive, Association of Mutual Funds in India.
Feature Presentation: Ashish Narsale/Rediff
