Monthly systematic investment plan (SIP) inflows into mutual funds fell to a three-month low of Rs 25,999 crore in February as market selloff intensified.
The SIP inflows in January stood at Rs 26,400 crore, a tad lower from December’s Rs 26,459 crore.
“The SIP inflows have come down, but the drop is not significant, partly due to February being a shorter month," said Suranjana Borthakur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India) on AMFI data.
Equity mutual fund inflows in February slumped 26 percent from the previous month to Rs 29,303.34 crore, data released by the Association of Mutual Funds of India (AMFI) on March 12 shows.
As per AMFI, the number of SIP accounts stood at 10.16 crore as of February 2025. Further, the number of SIP accounts that were opened during this month was 44.56 lakh, while number of accounts that have been discontinued were 54.70 lakh.
Further, 8.26 crore SIP accounts during February invested Rs 25,999 crore, which is the SIP inflows for the month. In January, 8.34 crore accounts had contributed towards Rs 26,400 crore worth of SIP inflows.
According to the AMFI data, total assets under management (AUM) via SIPs moderated to Rs 12.38 lakh crore in February against Rs 13.20 lakh crore in the previous month due to a mark-to-market (MTM) hit.
Meanwhile, SIP assets as a percentage of the industry’s total AUM have stayed at 19.2 percent during the last month.
"While short-term headwinds have tempered investment flows, domestic investor confidence remains strong, as indicated by continued inflows. Investors are adopting a cautious yet steady approach, reassessing their portfolios while maintaining long-term investment commitments," said Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India.
SIPs have continued to be an instrument of choice for retail investors. This allows investors to not try and time the market and invest regularly aligned to cash inflows or availability with the investor in a disciplined manner.
SIPs have experienced substantial growth in India over the past decade, reflecting a significant shift in individual investment behaviours. From Rs 8,513 crore in February 2020 to around Rs 26,000 crore in February 2025, SIP monthly investments have jumped more than three times during this period.
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