The net systematic investment plan (SIP) inflow surged to a record high of ₹2 trillion in financial year 2025-26 (FY26) despite a rise in SIP account closures amid equity market turbulence.
Net SIP inflow is calculated by subtracting redemptions from gross SIP investments.
The strong net SIP inflow indicates that even as account closures went up last year, it did not lead to a sharp spike in redemptions.
The redemption data derived from the gross and net SIP data puts the SIP account outflow in FY26 at ₹1.5 trillion.
Mutual fund (MF) officials attribute the rise in net SIP inflows to a growing “long-term” investment mindset among retail investors.
The net systematic investment plan (SIP) inflow surged to a record high of ₹2 trillion in financial year 2025-26 (FY26) despite a rise in SIP account closures amid equity market turbulence.
In FY26, the net SIP inflow reached 56 per cent of the ₹3.5 trillion gross SIP investments, marking the highest share in at least three years, according to data from the Securities and Exchange Board of India's (Sebi) annual report. In FY25, it was at 54 per cent.
Net SIP inflow is calculated by subtracting redemptions from gross SIP investments. The monthly SIP inflow data released by the Association of Mutual Funds in India (Amfi) is the gross number.
The strong net SIP inflow indicates that even as account closures went up last year, it did not lead to a sharp spike in redemptions. The redemption data derived from the gross and net SIP data puts the SIP account outflow in FY26 at ₹1.5 trillion. The redemptions, while being 15 per cent higher compared to ₹1.3 trillion in FY25, registered the slowest growth in the last three years. The outflow grew 57 per cent in FY24 and 18 per cent in FY25.
More importantly, the rise in redemptions in FY26 was significantly lower than the 21 per cent surge in gross inflows during FY25.
Mutual fund (MF) officials attribute the rise in net SIP inflows to a growing “long-term” investment mindset among retail investors.
"SIPs have truly become a meaningful part of household savings in India. What started off as an entry point into equity investing for most people has now evolved into a disciplined, long-term allocation strategy. This shift is clearly visible in the data — even as gross SIP inflows have grown, net inflows have remained equally robust," said Suranjana Borthakur, head of distribution & strategic alliances, Mirae Asset Mutual Fund.
SIPs data, especially the net inflow, gives a clear indication of the retail investment pattern, considering that the bulk of SIP inflows comes from retail investors, say experts.
While the gross SIP inflow continued to inch up last year and redemptions grew at a lower-than-normal pace, the equity market correction did impact net SIP account additions. SIP accounts grew by only 4 million in FY26 compared to nearly 17 million net additions in FY25, shows Sebi data.
The equity market has been turbulent since September 2024. The Nifty 50 index ended the two-year period ending March 2026 down over 5 per cent, while Nifty Smallcap 250 index was flat. The Nifty Midcap 150 gained 6 per cent.
