Why Did SIP Inflows Reach an All-Time High of Rs 26,688 Crore in May?
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Synopsis
In May, SIP inflows achieved a historic milestone, reaching Rs 26,688 crore, showcasing robust investor confidence in mutual funds. This article delves into the evolving trends in investment preferences, the increase in SIP accounts, and the overall growth of mutual fund assets under management.
Key Takeaways
- SIP inflows reached a record high of Rs 26,688 crore in May.
- The number of SIP accounts increased to 8.56 crore.
- Investor preferences are shifting towards equity and hybrid funds.
- Total SIP AUM rose to Rs 14.61 lakh crore.
- Equity mutual funds AUM grew to Rs 72.2 lakh crore.
New Delhi, June 10 (NationPress) Systematic Investment Plan (SIP) inflows soared to an unprecedented high of Rs 26,688 crore in May, surpassing the previous month's inflow of Rs 26,632 crore, as per data shared by the Association of Mutual Funds in India (AMFI) on Tuesday.
This record-setting SIP inflow indicates that investors are adopting a long-term approach to mutual fund investments.
According to AMFI's statistics, the count of SIP accounts rose to 8.56 crore in May, up from 8.38 crore the month before.
“Investor preferences are shifting. There is a noticeable trend towards equity and hybrid funds, fueled by long-term growth expectations and a careful outlook on debt. Retail participation is also on the rise. The mutual fund movement is becoming a mainstream option,” stated Narender Singh, Manager at smallcase and Founder of Growth Investing.
The total assets under management (AUM) for SIPs jumped from Rs 13.90 lakh crore in April to Rs 14.61 lakh crore.
SIP AUM constituted approximately 20.24 percent of the total AUM in the mutual fund sector in May, a rise from 19.9 percent in the previous month.
AMFI data also revealed that the SIP stoppage rate declined in May, with around 59 lakh SIP accounts being closed, while 43 lakh accounts saw their SIPs matured or closed. The overall count of SIP accounts in May stood at 9.06 crore.
“The SIP inflows exceeding Rs 26,000 crore is extremely promising, suggesting that investors are more inclined to choose SIPs over lump-sum investments,” remarked Akhil Chaturvedi, Executive Director and Chief Business Officer at Motilal Oswal AMC.
Meanwhile, the AUM for equity mutual funds climbed to Rs 72.2 lakh crore in May, reflecting a 4.85 percent increase from nearly Rs 70 lakh crore in April.
While investors are maintaining their investments, they are becoming more selective. Equity flows are decelerating, debt is stabilizing, and hybrid/passive fund categories are flourishing. Analysts note that market momentum and SIP discipline are key to sustaining AUM growth.
Point of View
The surge in SIP inflows signals a shift in investor behavior, favoring long-term strategies in mutual funds. This trend not only enhances market stability but also promotes greater financial literacy among retail investors. As the industry evolves, it is essential for stakeholders to adapt and cater to the changing preferences of investors.
NationPress
11/06/2025
Frequently Asked Questions
What are SIP inflows?
SIP inflows refer to the amounts of money invested in mutual funds through Systematic Investment Plans, allowing investors to contribute a fixed sum regularly.
How did SIP inflows change from April to May?
SIP inflows increased from Rs 26,632 crore in April to Rs 26,688 crore in May, marking a new record high.
What is the significance of increased SIP accounts?
An increase in SIP accounts indicates a growing number of investors opting for long-term investment strategies, reflecting confidence in mutual funds.
What trends are emerging in investor preferences?
There's a notable shift towards equity and hybrid funds, as investors seek long-term growth while being cautious about debt.
What is the current status of mutual fund AUM?
The total assets under management (AUM) for mutual funds have seen significant growth, with SIP AUM rising to Rs 14.61 lakh crore in May.
