SIP AUM grows by over ₹5 trillion in just 17 months, reflecting rising retail investor confidence and market recovery.

India’s Systematic Investment Plan (SIP) assets under management (AUM) crossed a major milestone of ₹15 trillion in June 2025, marking the fastest ₹5 trillion jump in the history of mutual funds. According to data from the Association of Mutual Funds in India (AMFI), SIP AUM grew by over 24% since February 2025, rising from ₹12.38 trillion to ₹15.30 trillion.

This sharp surge underscores resilient investor participation, even amid global and domestic market volatility.

SIP AUM Growth Journey: A Timeline of Milestones

• 2016: SIP AUM crosses the first ₹1 trillion

• July 2021: Reaches ₹5 trillion (took 5+ years)

• January 2024: Touches ₹10 trillion (in 31 months)

• June 2025: Crosses ₹15 trillion (in just 17 months)

This acceleration shows that retail investors are increasingly embracing SIP investing for long-term wealth creation, even during turbulent markets.

SIP Share in Mutual Fund Industry at All-Time High

With this milestone, the SIP AUM now accounts for 20.57% of the total mutual fund industry AUM — the highest ever. Over the past year, SIPs have maintained a strong position, consistently contributing close to 20% of total mutual fund assets.

Union Budget 2025 Boosts SIP Momentum

The 2025 Union Budget played a key role in strengthening retail SIP flows. Key tax relief measures, including:

• Enhanced standard deduction

• Revised tax slabs

• Increased disposable income

These reforms have empowered salaried and middle-income investors to allocate more capital toward disciplined monthly investments via SIPs.

Record SIP Inflows in June 2025

• SIP inflows hit a record ₹27,269 crore in June

  • Up from ₹26,688 crore in May

  • Slightly above ₹26,632 crore in April

• Net equity mutual fund inflows surged to ₹23,568 crore, a 24% increase over May

These figures indicate sustained retail investor confidence, driven by better liquidity, improved earnings outlook, and positive equity sentiment.

Market Recovery Fuels Investor Optimism

Indian equity markets have made a strong comeback since mid-March, following a steep correction that began in October 2024.

• Sensex and Nifty: Up 13%

• BSE MidCap: Up 18.5%

• BSE SmallCap: Up 23%

These rebounds have encouraged both new and existing investors to continue SIPs or increase contribution amounts, leveraging the cost-averaging benefits.

“SIPs offer a disciplined approach by averaging investment costs over time. They allow investors to buy more units when prices fall, making them ideal during volatility,” said Ajay Garg, CEO of SMC Global Securities.

Experts See Structural Strength in SIP Investing

According to Nikunj Saraf, Vice President at Choice Wealth, a combination of factors is driving consistent SIP momentum:

• Reduced redemptions

• Strategic diversification

• Strong market fundamentals

• Rising retail financial literacy

“This reflects deepening trust in mutual funds and a structural commitment to long-term equity investing,” he said.

Outlook: SIPs Set to Drive Long-Term Wealth Creation

With improving investor confidence, strong market fundamentals, and favourable policy support, SIPs are expected to remain a core investment vehicle for millions of Indian households. The trend signals a maturing investor base, one that values consistency, compounding, and financial discipline over short-term market noise.

Source: MoneyControl