Systematic investment plan (SIP) investments into mutual fund (MF) schemes crossed ₹3 trillion for the first time in a calendar year in 2025, as investors increasingly relied on the staggered investment route amid market volatility.
How much money flowed into SIPs in 2025?
Investors, in 2025 (till November), have put in ₹3.04 trillion through SIPs into MF schemes. In comparison, gross SIP investments in 2024 stood at ₹2.69 trillion, data from the Association of Mutual Funds in India (Amfi) showed.
The strong SIP inflows offset, to an extent, the decline in one-time or lump-sum investments.
Why did lump-sum investments decline this year?
Gross flows into active equity schemes show a 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, are ₹2 trillion lower in 2025 (as of October) compared with 2024, SIP investments in active equity schemes are already 3 per cent higher at ₹2.3 trillion.
How has SIP share in equity inflows changed?
The divergent inflow trend led to a spike in SIP share in equity inflows this year. SIP investments accounted for 37 per cent of gross inflows into active equity schemes in the first 10 months of 2025. In comparison, SIPs had a share of 27 per cent in 2024.
SIP investments largely flow into equity schemes, as the systematic route is recommended for volatile asset classes. Active equity schemes alone accounted for 80 per cent of total SIP inflows.
Why are SIPs gaining popularity among investors?
“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.
What is happening to the number of SIP accounts?
The robust growth in SIP flows has come despite the number of active accounts shrinking in 2025. The number of active SIP accounts saw a sharp drop in the first few months of the year amid a market correction and a one-time data clean-up 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.
How significant are SIPs for the mutual fund industry’s AUM?
“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 ₹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.