The mutual fund industry in India continues to witness strong retail participation, as Systematic Investment Plan (SIP) inflows surged to a record high of ₹26,688 crore in May 2025, according to data released by the Association of Mutual Funds in India (AMFI). This marks a marginal rise from ₹26,632 crore recorded in April, signaling consistent long-term commitment by investors despite market volatility.
Key Highlights:
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SIP Inflows Rise: SIP contributions increased by 0.21% month-on-month to ₹26,688 crore in May.
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SIP AUM Growth: The SIP assets under management (AUM) rose to ₹14.61 lakh crore in May from ₹13.90 lakh crore in April.
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SIP Share in Total AUM: SIP AUM now accounts for 20.24% of the mutual fund industry’s total AUM, up from 19.9% in April.
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SIP Account Growth: The number of active SIP accounts climbed to 8.56 crore, while the total SIP accounts reached 9.06 crore, reflecting growing investor participation.
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Lower SIP Stoppage Ratio: For the first time in months, the SIP stoppage ratio improved, with 59 lakh new SIP accounts opened and 43 lakh closed or matured in May.
Mutual Fund Industry Performance – May 2025
Despite a 21.66% decline in net inflows into open-ended equity mutual funds, totaling ₹19,013 crore—marking a one-year low—the mutual fund industry continued to expand.
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Overall Mutual Fund Net Inflows: ₹29,108 crore in May
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Total Industry AUM: Crossed a record ₹72.20 lakh crore, up from ₹69.99 lakh crore in April
Expert Commentary
“The underlying trend remains robust. Strong SIP inflows, which we have witnessed in recent times, are likely to continue. This reflects the growing maturity and long-term equity commitment among Indian investors,” said Himanshu Srivastava, Associate Director – Manager Research, Morningstar India.
He further noted that the dip in equity fund inflows appears cyclical, and a recovery is expected as macroeconomic indicators remain favorable.
Why This Matters for Investors
The continued rise in SIP inflows amid equity market corrections highlights the growing financial discipline among Indian retail investors. Systematic Investment Plans (SIPs) remain a powerful tool for wealth creation, especially in volatile markets.
With mutual fund AUM reaching all-time highs and SIP contributions setting new records, India’s mutual fund industry is positioned strongly for sustained growth through FY2025.
Source: Moneycontrol