India SIP inflows reach record Rs 2 trillion in FY26

Net systematic investment plan (SIP) inflows into Indian mutual funds reached a record Rs 2 trillion during the 2025-26 financial year (FY26), according to data from the Securities and Exchange Board of India (SEBI). This net inflow represented approximately 56 per cent of the Rs 3.5 trillion in gross SIP investments, the highest share in at least three years.

Despite an increase in SIP account closures due to equity market volatility, the rise in closures did not lead to a proportionate surge in redemptions. Total SIP outflows through redemptions were approximately Rs 1.5 trillion in FY26, a 15 per cent increase from Rs 1.3 trillion in FY25. This growth in outflows marks a significant slowdown compared to previous years, which saw jumps of 57 per cent in FY24 and 18 per cent in FY25.

Industry officials attribute the strong net inflows to a growing long-term investment approach among retail investors, who appear more willing to maintain commitments through market corrections rather than exiting during volatility. SEBI has noted a sharp rise in the number of unique investors and a significant increase in average monthly SIP contributions compared to FY19 levels.