Equity SIP inflows see rare dip as volatility tests investor patience

Overall SIP tally sustains at ₹31,000 cr in January, thanks to spurt in inflows into ETFs, FoFs

Systematic investment plan (SIP) inflows into active equity schemes registered a rare dip in January, as the prolonged equity market vola-tility is starting to test the 'resilience' of system-atic inflows. Active equity schemes garnered gross SIP inflows of ₹25,091 crore last month, ₹240 crore lower compared to the December 2025 tally of ₹25,332 crore, shows the break-up of SIP inflow data. 

The last time active equity SIP inflows wit-nessed a decline was in February-March 2025 amid a sharp equity market correction.

SIP inflows have been the major pillar of support for the equity market in recent years, cushioning the impact of the continued selling by foreign portfolio investors (FPIs). 

In 2025, MFs, buoyed by SIP inflows, in-vested nearly ₹5 trillion in the equity market. Investors had put in record ₹2.8 trillion into active equity schemes through SIPs last year even as one-time investments moderated. 

However, the lower-than-expected near term returns, heightened volatility and the growing interest in gold and silver exchange traded funds (ETFs) and fund of funds (FoFs), and hybrid schemes has started to weigh on the equity SIP flows. 

"The industry has been recommending hy-brid funds in recent years. Now that they have started to outperform equity schemes in the near-term, the interest is picking up. Gold and silver schemes are also seeing a surge in SIP in-flows," said DP Singh, deputy managing direc tor (MD) & joint chief executive officer (CEO), SBI Mutual Fund. 

While hybrid schemes have risen at a con-sistent pace in the last one year, ETFs and FoFs have seen a sharp pick up. In January, investors poured ₹1,441 crore into ETFs and FoFs through SIPs, nearly four times the ₹371 crore recorded in January 2025. The sharp rise is likely to be driven by gold and silver ETFs and FoFs. 

"Pause in the relentless growth of equity SIPs can be attributed to a combination of profit-booking, a massive shift towards 'safe-haven' assets, and cautious sentiment. Inves-tors shifted focus to precious metals as a hedge against global geopolitical tensions and trade uncertainties," said Vipul Bhowar, senior direc-tor, head of equities, Waterfield Advisors. 

The hybrid fund SIP inflows have surged from ₹1,657 crore in January 2025 to ₹2,023 crore in January 2026. 

According to experts, the decline is likely a minor blip in the growth journey of equity SIPs. 

"Some of this can also be due to year-end commitments and liquidity requirements and seems temporary. Long-term trends still remain bullish for SIPs as more and more Indians par-ticipate in equity markets," said Ankur Punj, MD & business head at Equirus Wealth. 

The increase in flows into other categories has allowed the total SIP flows to remain at the record high of ₹31,002 crore even as active equity flows declined. 

The comparatively lower growth in equity SIP flows vis-a-vis other categories has resulted in a drop in their share in the total SIP inflows. Their share, which stood at 82.5 per cent in January 2025, is now down to 80.9 per cent. 

As SIP flows moderate and lump sum in-flows remain subdued, the net inflows into ac-tive equity schemes continue to decline. At ₹24,040 crore, the net inflows in January were the lowest in seven months.