Despite single-digit returns over the past three years, SIP inflows reached a record ₹32,297 crore in August 2026, according to Geojit Research data. The overall SIP inflows of ₹1.58 lakh crore over the last five months have touched 45% of the previous fiscal year's total inflow of ₹3.50 lakh crore. Most equity funds have delivered single-digit returns in the last three years, with the average SIP returns ranging from 5% to 13% across different categories. However, small and mid-cap funds have delivered exceptional returns of 28% and 18% respectively over the last one year, largely attributed to strong inflows in these schemes. The latest data reveals that four equity categories together garnered ₹16,096 crore through SIPs in August, accounting for 49.8% of the industry's total SIP inflows.
According to AMFI's latest data, small-cap funds led SIP collections at ₹5,012 crore, followed by mid-cap funds at ₹4,254 crore and flexi-cap funds at ₹4,106 crore. Thematic funds received another ₹2,724 crore, demonstrating the concentrated nature of SIP investments across specific categories. The top four equity categories together attracted ₹16,096 crore through SIPs in August, representing nearly half of the industry's total SIP inflows. This concentration pattern reflects investor preference for higher-risk, higher-return categories despite modest overall market performance. Small-cap funds have been among the biggest beneficiaries of the SIP-led expansion in mutual funds, with SIP-linked assets in small-cap funds rising nearly fivefold to ₹1.83 trillion in March 2026 from ₹35,489 crore five years earlier.
According to Geojit Research data, large and value funds were the least performers with average SIP returns of 5% and 7% respectively over three years, while flexi and large and mid-cap funds delivered 8% and 9% returns respectively. However, small and mid-cap funds significantly outperformed with average SIP returns of 13% each. Over the last one year, small and mid-cap funds have delivered exceptional returns of 28% and 18% respectively, largely on the back of strong inflows in these schemes. The consistently strong SIP inflows into small-cap, mid-cap and flexi-cap funds have helped these categories consistently top the overall net inflows chart among equity schemes, with small-cap funds leading the pack with SIP inflows of ₹5,012 crore in August.
Investment experts emphasize the systematic approach of SIP investing in volatile assets has shaped investor behavior in the recent environment. Aditya Agarwal, CFA, Chief Investment Officer at Avisa Wealth Creators, noted that SIP growth remains steady despite modest 1-3 year returns because investors increasingly view SIPs as a disciplined, long-term wealth-creation tool rather than a short-term return strategy. Yudhajit Baul, Founder of Yudhajit Financial Services, highlighted that despite headwinds of geopolitics, sub-par monsoon and high crude oil prices, earnings growth are expected to be strong in the September quarter. Sriram BKR, Senior Investment Strategist at Geojit Financial Services, stressed that equity is a high-risk asset leading to extended periods of drawdowns, making it very important to continue with SIP through low return periods.
