Share of SIP-linked assets in equity mutual fund AUM surpasses 40%

SIP-linked assets now account for over 40 per cent of active equity mutual fund AUM, supported by resilient retail participation despite a recent moderation in monthly inflows

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.

 

The share crossed the 40 per cent-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 ₹14.6 trillion in May 2026, while the total active equity AUM was ₹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. 

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 ₹30,000 crore for the past three months. The ₹30,954 crore inflows recorded in May 2026 reflects around 16 per cent year-on-year (Y-o-Y) rise. 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. In addition, the industry has seen a net addition of about 77 million SIPs since May 2025, further strengthening the retail base," said Saugata Chatterjee, president and deputy chief executive officer (CEO), Nippon India MF.

 

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 ₹32,087 crore in March to ₹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.

 

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 (Amfi).