SIPs (Systematic Investment Plans) have become a favourite choice for many because they offer a disciplined way to invest in mutual funds. Nowadays, Indian investors are increasingly choosing SIPs as their preferred investment tool. With SIP growth of over 45% in FY25, are they the future of safe and steady returns in the Indian market?
According to Venkat Chalasani, Chief of the Association of Mutual Funds in India (AMFI), the number of Systematic Investment Plan accounts also grew significantly. As per the data, they reached 8.38 crore in April.
“SIP contributions hitting a record high of Rs 26,632 crore in April is driven by a continuous rise in the number of active accounts. This is a clear sign of the increasing popularity of mutual funds among investors,” said Chalasani.
SIP Growth Rate and Investment Trends
Data from AMFI shows that SIP growth has been steady over the years. Assets under management (AUM) under SIPs also increased to Rs 13.90 lakh crore in April. This accounts for 20% of the total AUM of the Indian mutual fund industry.
SIP Growth in India (As of April 2025)
| Metric | Value | What It Tells You |
| Monthly SIP Inflows | ₹26,632 crore | All-time high in April 2025 – shows rising SIP popularity |
| Monthly Growth Rate | 2.72% | Compared to ₹25,926 crore in March 2025 |
| Total SIP AUM | ₹13.90 lakh crore | Accounts for 20% of the total mutual fund industry AUM |
| Active SIP Accounts | 8.38 crore | Increased from 8.11 crore in March 2025 |
| SIP Inflows FY25 | ₹2.9 lakh crore | Up 45.24% YoY – the fastest growth since FY18 |
| SIP Accounts Registered (Apr) | 46 lakh | New accounts added in April 2025 |
| SIP Accounts Stopped/Matured (Apr) | 1.36 crore | Due to reconciliation as per new regulation |
| Equity Mutual Fund Inflows (Apr) | ₹24,269 crore | A slight drop of 3.2% from March |
| Equity Inflows Streak | 50 months | Continuous positive inflow since 2019 |
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The number of SIP accounts contributing every month also grew. In April 2025, there were 8.38 crore active SIP accounts, compared to 8.11 crore in March.
SIP Investment Accounts- Stoppages and Adjustments
However, there were some challenges, as the number of SIP investment stoppages also rose. While 46 lakh new SIP accounts were opened in April, 1.36 crore SIP accounts were either stopped or matured during the same period.
Despite negative returns in small- and mid-cap stocks over the past 3–6 months, investors did not exit. Instead, they rotated their investments into sectoral and thematic funds, which saw a significant increase in inflows.
However, there was also a notable increase in SIP account closures.
During April, 46 lakh new SIP accounts were opened, but 1.36 crore SIP accounts were either closed or matured. According to Chalasani, this rise in SIP stoppage was due to a reconciliation exercise carried out by Registrars and Exchanges based on a regulatory order. The number of stopped SIPs is expected to drop in May, as the clean-up was completed in April.
Equity Mutual Funds and Investor Trends
While SIPs saw growth, net investments in equity mutual funds dropped 3.2% to Rs 24,269.26 crore in April compared to the previous month. Still, equity mutual funds continued their positive inflow streak for the 50th month in a row.
Overall Growth in Mutual Funds
The overall net inflows into the Indian mutual fund industry stood at Rs 2.77 lakh crore in April, driven by widespread buying in mutual funds. SIPs, in particular, have experienced impressive growth over the past decade.
SIP investment grew from Rs 8,513 crore in February 2020 to around Rs 26,000 crore in February 2025, reflecting a more than three-fold increase.
Final Thoughts
The data shows that SIPs are becoming a preferred option for Indians. If you are also looking to invest regularly in mutual funds, SIP is a great choice. You can start with minimum of ₹500 per month.
Source: MoneyControl
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