After a record July, August SIP inflow dips marginally as volatility and foreign outflows weigh

the SIP stoppage ratio rose to 74.5 percent in August, from 62.8 percent in July and 56.1 percent in June, indicating a higher proportion of discontinuations relative to new registrations.

The mutual fund SIP inflow for August marginally fell by 0.7 percent month-on-month, still remained robust at Rs 28,265 crore compared to Rs 28,464 crore in July as volatility and foreign outflows weighed on the sentiment, latest data from AMFI has shown.

According to AMFI, the number of contributing Systematic Investment Plan (SIP) accounts stood at 8.99 crore in August compared to 9.11 crore in July, reflecting a marginal dip due to month-end holidays, with some contributions expected to flow into September. SIP assets under management stood at Rs 15.18 lakh crore, largely stable compared to Rs 15.19 lakh crore in July, with SIPs continuing to account for 20.2 percent of the mutual fund industry’s total assets.

The total SIP account base has expanded further, with the number of SIP accounts in August at 9.59 crore, up from 9.45 crore in July, with 55.22 lakh new registrations seen during the month while 41.15 lakh accounts were closed or matured.

On the other hand, SIP stoppage ratio – or SIPs discontinued divided by new SIPs registered - rose to 74.5 percent in August from 62.8 percent in July and 56.1 percent in June, indicating higher discontinuations relative to new registrations. Despite this, the ratio has been well-below the sharp spike of nearly 300 percent seen in April 2025. A lower stoppage ratio suggests that a larger share of investors are continuing with their SIPs.

Industry experts have expressed some disappointment with the SIP inflow, but they do not see it as a concerning change in trend. “The flow hasn’t been moving down significantly; its sustainability has been maintained. There will be instances where SIPs stop, and at other times, new SIPs will start. The number of SIP stoppages will likely be relatively higher for now, but going forward, the number of new SIPs may pick up,” said Himanshu Srivastava – Principal, Manager Research, Morningstar Investment Research India, adding that the broader trend has been consistent. “Considering that this is a large country with many investors, a lot of activity will continue to happen. My sense is that the contribution of new SIPs should increase over time. Additionally, we should factor in that many investors may be waiting for a further market correction before starting SIPs,” Srivastava said.

Attributing the dip in SIPs to market volatility, Ankur Punj, MD and Business Head, Equirus Wealth said, “Healthy SIP inflows reflect confidence that retail investors have in markets, and this will continue to drive the markets.”

Equity mutual funds saw inflows worth Rs 33,430 crore in August 2025, marking the 54th positive month, though the number has been lower than July’s Rs 42,702 crore. Among categories, flexi-cap funds led with Rs 7,679 crore, followed by mid-cap funds at Rs 5,331 crore and small-cap funds at Rs 4,993 crore.

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