SIP Inflows Surge to Record ₹31,781 Crore as Stoppage Ratio Hits Six-Month Low

SIP Inflows Surge to Record ₹31,781 Crore as Stoppage Ratio Hits Six-Month Low​

Systematic investment plans (SIPs) in the mutual fund industry witnessed a strong uptrend in June, reaching a record contribution of ₹31,781 crore. This figure represents a 2.7 percent rise from May's contributions of ₹30,954 crore. Furthermore, monthly SIP assets under management saw substantial growth, affirming sustained investor interest across retail participants.

Recovery Seen as SIP Stoppage Ratio Plummets to Six-Month Low​

The industry showed significant signs of recovery in June regarding SIP retention. The SIP stoppage ratio improved markedly, settling at 77.3 percent, the lowest level observed in six months. This improvement was driven by fresh registrations continuing to outpace discontinued plans for the second consecutive month.

AMFI data indicates that 65.51 lakh new SIPs were registered during June. Conversely, 50.64 lakh existing SIPs were discontinued due to maturity or closure. This level is a sharp contrast from May, when the ratio stood at 95.5 percent, indicating a clear downward trend in churn.

Retail Participation and Equity Funds Drive Growth​

Retail participation expanded robustly on a year-on-year basis. The number of contributing SIP accounts climbed to 9.78 crore in June, up from 8.64 crore one year prior. Total SIP assets under management rose to ₹17.70 lakh crore, according to the data.

Equity mutual funds were particularly buoyant during June, attracting a substantial ₹28,973 crore in net inflows. This performance marks the 64th consecutive month that equity funds have seen net inflows. Mid-cap funds led the category with strong contributions of ₹6,090 crore. Small and flexi-cap categories also performed well, garnering ₹5,602 crore and ₹5,231 crore respectively.

Industry Assets Rise Amid Debt Fund Outflows​

The overall mutual fund industry assets under management (AUM) grew by 0.79 percent month-on-month, reaching ₹82.22 lakh crore. This collective growth is supported by the positive momentum observed across equity schemes. SIPs now constitute 21.5 percent of the total mutual fund industry assets, up from 20.6 percent a year ago.

Despite strong performance in key segments, debt mutual funds faced headwinds. These schemes witnessed net outflows totaling ₹1.09 lakh crore during the month. The outflows were primarily attributed to quarter-end advance tax related redemptions observed across liquid and short duration schemes.