Indian investors contributed a record ₹31,781 crore through Systematic Investment Plans (SIPs) in June, up from ₹30,954 crore in May. The SIP stoppage ratio reached a six-month low, reflecting a strong trend of new registrations outpacing account closures. Equity mutual funds continue to drive growth with 64 consecutive months of net inflows.
The Indian mutual fund industry saw record-breaking retail participation in June, with monthly Systematic Investment Plan (SIP) contributions rising to ₹31,781 crore. This growth of 2.7% over the previous month shows that individual investors continue to prioritize long-term wealth creation despite market volatility. Compared to June of the previous year, the monthly contribution figure has grown by 16.5%, highlighting the deepening penetration of financial savings in India.
New SIP Registrations Outpace Discontinuations
Data from the Association of Mutual Funds in India (AMFI) indicates a healthier trend in investor retention. The SIP stoppage ratio, which measures the number of discontinued SIPs against new registrations, improved to 77.3% in June. This is the lowest level recorded in six months. During the month, investors added 65.51 lakh new SIP accounts, while 50.64 lakh accounts were discontinued. The total number of active SIP accounts has now expanded to 9.78 crore, reflecting a steady increase from 8.64 crore accounts reported a year ago.
Equity Fund Demand Remains Strong
Equity mutual funds remain the primary focus for retail investors, recording net inflows of ₹28,973 crore in June. This marks 64 straight months of positive net inflows into equity-oriented schemes. Within this category, mid-cap funds led the demand with ₹6,090 crore in net inflows, followed closely by small-cap funds, which attracted ₹5,602 crore. This interest in mid- and small-cap categories suggests that investors are willing to take on higher risk in exchange for potential long-term returns, though investors may track whether these segments maintain their momentum if market valuations rise significantly.
Industry Asset Growth and Debt Outflows
The overall Assets Under Management (AUM) for the mutual fund industry grew by 0.79% month-on-month, reaching a record ₹82.22 lakh crore. While equity and SIP assets are growing, the debt mutual fund segment witnessed net outflows of ₹1.09 lakh crore in June. Financial analysts often link such outflows in debt funds to seasonal factors, such as corporate tax payments and advance tax redemptions by institutional investors. SIP assets now account for ₹17.70 lakh crore, or 21.5% of the total industry AUM. The key monitorable for investors in the coming months will be whether this steady inflow of retail money into equity funds continues if interest rates fluctuate or if broader market performance undergoes a correction.