Inflows into mutual fund (MF) schemes via systematic investment plans (SIPs) have topped Rs 3 trillion for the first time in a calendar year, as investors increasingly rely on the staggered investment route amid market volatility.
Illustration: Dominic Xavier/Rediff
Investors put Rs 3.04 trillion into MF schemes through SIPs until November this year, as against Rs 2.69 trillion in the entire 2024, data from the Association of Mutual Funds in India (Amfi) shows.
The strong SIP inflows offset, to an extent, the decline in lump-sum investments.
Gross investments in active equity schemes show the divergence in investor behaviour in 2025.
While lump-sum inflows — often referred to as smart money, or opportunistic flows, as these investors attempt to time the market — stood at Rs 3.9 trillion as of October 2025, compared to Rs 5.9 trillion last year, SIP investments in active equity schemes were up 3 per cent at Rs 2.3 trillion in the same period.
This trend has led to a spike in SIPs’ share in equity inflows this year. SIP investments accounted for 37 per cent of the gross inflows into active equity schemes in the first 10 months of 2025, compared to 27 per cent in 2024.
SIP investments largely go into equity schemes as the systematic route is recommended for volatile asset classes.
Active equity schemes alone corner 80 per cent of the total SIP inflows.
“SIPs have emerged as India’s preferred long-term wealth-building habit, helping investors maintain discipline through market volatility while steadily deepening equity participation across market cycles,” said Venkat Chalasani, chief executive, Amfi.
The robust growth in SIP flows has come despite the number of active accounts shrinking in 2025.
The number of active accounts had seen a sharp drop in the first few months this year amid a market correction and a one-time data cleanup exercise by fund houses.
The total number of active SIP accounts stood at 100 million in November 2025, lower than 103 million in December 2024.
“The growing flow share has also translated into a higher SIP share in the industry’s total assets under management (AUM).
“SIPs have emerged as one of the strongest and most reliable engines of growth for the MF industry, contributing significantly to both asset expansion and investor participation.
“By November 2025, SIP AUM had reached Rs 16.53 trillion, accounting for more than 20 per cent of the industry’s total AUM, highlighting their pivotal role in boosting long‑term asset accumulation,” ICRA Analytics said in a recent report.
