Mutual Fund investments through Systematic Investment Plans (SIPs) witnessed a remarkable jump of 45.24% year-on-year, reaching a record ₹2.9 lakh crore in FY25, as per data released by the Association of Mutual Funds in India (AMFI) on April 11. This marks the fastest growth since FY18, when SIP inflows had surged by 52.98%.

This impressive leap from ₹1.99 lakh crore in FY24 not only highlights the increasing appetite for disciplined investing, but also shows how retail investors are maturing in their understanding of long-term wealth building, despite ongoing market fluctuations.

Monthly Contributions on the Rise

During FY25, the average monthly SIP contribution increased significantly to ₹24,113 crore, compared to ₹16,602 crore in FY24. This demonstrates how SIPs are becoming a preferred route for retail investors aiming to build a stable financial future.

In March 2025 alone, SIP inflows surged 34.53% year-on-year to reach ₹25,926 crore. However, a slight dip was observed on a month-on-month basis, with SIPs hitting a four-month low, even as equity markets began recovering.

Steady Investment Despite Volatility

Venkat N Chalasani, CEO of AMFI, stated, "The steady increase in SIP flows is a testament to the growing maturity of retail investors in understanding the importance of systematic and disciplined investing." He emphasized that the rising contribution reflects trust in mutual funds as a core pillar of financial planning.

The consistent growth in SIP investments underscores a broader trend—investors are not deterred by short-term market corrections. Instead, they are showing dedication to long-term financial goals by staying invested through SIPs.

Contribution of SIPs to Total Mutual Fund AUM

By March 2025, SIP assets touched ₹13.35 lakh crore, reflecting a 24.59% year-on-year growth. SIPs now make up 20.31% of the total mutual fund industry’s Assets Under Management (AUM).

This shows that SIPs are not just growing in inflows but also in their share of total managed assets, strengthening their role as a key investment avenue.

Increase in Active SIP Accounts

The total number of contributing SIP accounts reached 8.11 crore by the end of March 2025, an increase of 27.17% from April 2024. This rise indicates growing financial participation from individuals across different income segments in India.

This financial inclusion trend further reflects increased awareness about the benefits of regular, small-ticket investments in equity markets.

SIP Stoppage Ratio Concerns

Despite the overall optimism, SIP stoppage ratio rose in March. According to Moneycontrol, 51 lakh SIP accounts were discontinued, while only 40 lakh new accounts were registered.

As a result, the SIP stoppage ratio increased to 127.5% in March, up from 122% in February 2025. This metric indicates that for every 100 SIPs registered, 127.5 were stopped—raising concerns about investor retention and sustainability of SIPs in uncertain markets.

Equity Mutual Funds Still Attract Inflows

While SIP contributions soared, net inflows into equity mutual funds dipped by 14% in March 2025 to ₹25,082.01 crore. Still, this marked the 49th consecutive month of positive net inflows into open-ended equity funds, indicating continued interest from long-term investors.

Key Takeaways

• Retail investors are embracing SIPs more than ever, as reflected by the record ₹2.9 lakh crore inflows in FY25.

• The monthly SIP average of ₹24,113 crore highlights a stable and growing interest in systematic investing.

• Despite temporary disruptions and volatility, investor behaviour is increasingly mature, with SIPs being treated as a disciplined financial strategy rather than market-timing bets.

Final Thoughts

The financial year FY25 has proven to be a milestone period for SIP-based mutual fund investments in India. Retail investors are displaying resilience, discipline, and confidence in wealth creation through equity markets.

While the rising SIP stoppage ratio poses a challenge, the growth in contributions, AUM, and participating accounts suggests that India’s mutual fund ecosystem is maturing rapidly.

With increased financial literacy campaigns, improved digital access, and a shift in investor mindset, SIPs are cementing their place as the backbone of long-term investing in the Indian financial landscape.

For investors and industry stakeholders alike, these trends offer both opportunity and responsibility—to build, maintain, and protect the wealth of a growing investor base.

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