Daijiworld Media Network - New Delhi
New Delhi, Jun 13: India’s systematic investment plan (SIP) ecosystem has demonstrated remarkable resilience over the past decade, with monthly SIP contributions increasing almost tenfold despite facing several major economic and global disruptions, according to a recent report by ValueMetrics.
The report noted that monthly SIP inflows have climbed from Rs 3,189 crore in May 2016 to Rs 30,954 crore in May 2026, highlighting the growing preference among retail investors for disciplined and long-term wealth creation through mutual funds.
The sustained growth has come despite a series of challenging events over the past decade, including demonetisation, the Covid-19 pandemic, the Russia-Ukraine conflict, and global trade uncertainties arising from tariff-related tensions.
India’s mutual fund industry continued to witness strong retail participation, with SIP assets reaching Rs 17.12 lakh crore. The industry’s total assets under management (AUM) stood at Rs 81.6 lakh crore at the end of May 2026.
The number of outstanding SIP accounts rose to 1,047 lakh during the month, registering an annual growth of more than 15 per cent compared with 906 lakh accounts recorded in May 2025. Net additions to SIP accounts improved modestly to 2.5 lakh in May after remaining nearly stagnant in the previous two months.
Data showed that 54.2 lakh new SIP accounts were registered during May, while 51.7 lakh accounts were either discontinued or reached maturity, indicating a rising churn rate within the investor base.
The industry had recorded net additions of minus 0.6 lakh SIP accounts in both March and April 2026, reflecting temporary pressure on account growth before the recovery seen in May.
Equity-oriented mutual funds continued to attract significant investor interest. Active equity funds received gross inflows of Rs 57,604 crore during the month, while net inflows into active equity and hybrid fund categories combined stood at Rs 33,468 crore.
Hybrid funds, excluding arbitrage schemes, recorded net investments of Rs 4,862 crore, underlining investor interest in diversified investment strategies amid market volatility.
The report, however, highlighted a narrowing gap between new registrations and discontinuations. Gross SIP registrations accounted for 5.2 per cent of outstanding accounts, while discontinuations stood close behind at 5.0 per cent, signalling the need for fund houses to focus on investor retention.
In contrast to equity funds, gold exchange-traded funds (ETFs) witnessed net outflows of Rs 725 crore in May, reversing the strong inflow momentum seen earlier in the year. Active equity funds, meanwhile, recorded net inflows of Rs 22,908 crore.
Despite fluctuations across asset classes, the report said the steady rise in SIP contributions reflects the growing maturity of India’s retail investor base and continued confidence in long-term investment planning through mutual funds.