SIP inflows hit all-time high of ₹26,688 crore in May

Systematic Investment Plan (SIP) inflows reached an all-time high of ₹26,688 crore in May, from ₹26,632 crore in April, according to data released by the Association of Mutual Funds in India (AMFI) on Tuesday. 

The highest-ever inflow of SIP shows that people are investing in mutual funds from a long-term perspective.

According to the AMFI data, the number of contributing SIP accounts increased to 8.56 crore in May, from 8.38 crore in the previous month.

“Investor preferences are evolving. There’s a clear lean toward equity and hybrid funds, driven by long-term growth outlooks and a cautious stance on debt. Retail participation is also surging. The mutual fund revolution is becoming mainstream,” said Narender Singh, smallcase Manager and Founder of Growth Investing.

The total assets under management (AUM) under SIP rose from ₹13.90 lakh crore in April to ₹14.61 lakh crore.

SIP AUM was around 20.24% of the total AUM of the mutual fund industry in May – from 19.9% in April.

According to the AMFI data, the SIP stoppage ratio weakened in May. About 59 lakh SIP accounts were closed in May, while SIPs were closed or matured for 43 lakh accounts. The total number of SIP accounts in May was 9.06 crore.

“SIP numbers over ₹26,000 crore is very encouraging, which implies that the fresh investment preferred route has been SIP than lumpsum,” said Akhil Chaturvedi, Executive Director and Chief Business Officer, Motilal Oswal AMC.

Meanwhile, Assets Under Management (AUM) for equity mutual funds rose to ₹72.2 lakh crore in May, up 4.85% from nearly ₹70 lakh crore in April.

Investors are staying invested, but becoming selective. Equity flows are slowing, debt is stabilising, and hybrid/passive categories are thriving. Market momentum and SIP discipline continue to support AUM growth, said analysts.

(This story was taken from a syndicated feed and was only edited for style by Gujarat Samachar Digital team)