New Delhi, September 9 (Daily Kiran) : In New Delhi, net investments in Systematic Investment Plans (SIPs) for mutual funds have soared to a record ₹2 lakh crore during the fiscal year 2025-26. This remarkable achievement comes even as the stock market experiences fluctuations and the number of closed SIP accounts rises. According to data released by the Securities and Exchange Board of India (SEBI), this figure marks the highest level ever recorded, indicating a strong long-term investment outlook among retail investors.
Throughout the fiscal year, the mutual fund industry saw gross SIP investments totaling ₹3.5 lakh crore, with net SIP flows accounting for about 56% of this amount. This is the highest percentage seen in the last three years, compared to 54% in the previous fiscal year.
Net SIP flow is calculated by subtracting redemptions from gross investments, whereas the Association of Mutual Funds in India (AMFI) provides monthly SIP data reflecting gross investments. SEBI’s figures reveal that while the number of SIP accounts closed increased during the fiscal year, this did not proportionately affect the redemptions. Total withdrawals via SIPs for the year reached approximately ₹1.5 lakh crore.
Although this represents a 15% increase from the ₹1.3 lakh crore seen in the fiscal year 2024-25, it is the slowest growth rate for withdrawals in the past three years. In comparison, SIP redemptions rose by 57% in 2023-24 and by 18% in 2024-25.
Experts in the mutual fund sector suggest that retail investors have become more mature in their investment behavior. Many are choosing to maintain their SIP contributions even amid market volatility, avoiding the temptation to exit investments due to short-term declines. This resilience has contributed to the record levels of net SIP flows despite challenging market conditions.
However, the volatility has impacted the pace of new SIP account registrations. The total number of new SIP accounts increased by only 4 million in 2025-26, a significant drop from the 17 million added in the previous fiscal year. This suggests a slowdown in new investor participation, although existing investors remain committed.
Reports indicate that market instability has persisted since September 2024. Over the two years leading up to March 2026, the Nifty 50 index experienced a decline of more than 5%, while the Nifty Smallcap 250 remained relatively stable. In contrast, the Nifty Midcap 150 recorded an increase of approximately 6% during the same period.
Leave a Comment