Small-cap funds have emerged as the clear leader in SIP penetration at 55% as of March 2026, according to the latest AMFI-Crisil Factbook 2025-26. The category's SIP AUM surged nearly five times from ₹35,489 crore in March 2021 to ₹1.83 lakh crore in March 2026, demonstrating exceptional growth momentum. Multi-cap funds also showed remarkable expansion with SIP AUM rising to nearly ₹0.62 lakh crore from ₹0.08 lakh crore over the same period, representing an almost eight-fold increase. The report, launched by AMFI on August 21, 2026, highlights how small-cap funds now stand out with nearly 55% SIP penetration as of March 2026. Other categories such as Equity-linked savings scheme (ELSS), largecap, large- and midcap funds have also seen steady growth in SIP penetration, with SIP AUM in the respective categories contributing to 40-50% of total category assets, reflecting their role as core allocation routes across market capitalisations.
Small-cap funds have delivered around 17% annualised returns over five years versus 9.1% for the Nifty 50, according to Adil Chacko, Executive Director, Anand Rathi Wealth. As reported by Mint, multi-cap funds entered the top 10 with a 4.1% share, offering mid- and small-cap exposure through a single fund. Small-cap funds increased their SIP share from 8.3% to 12.1% between March 2021 and March 2026, with inflows rising from ₹41,600 crore in FY25 to ₹51,800 crore in FY26. The strong performance has driven significant investor interest, with SIP AUM in small-cap funds accounting for 55% of the category's assets as of March 2026. Equity remained the dominant component with SIP AUM rising from ₹3.46 lakh crore to ₹12.85 lakh crore, reinforcing its role in long-term wealth creation through periodic investing.
Total SIP AUM (excluding fund of funds investing overseas) increased sharply from ₹4.25 lakh crore to ₹14.83 lakh crore, reflecting the growing institutionalisation of disciplined household investing. Monthly SIP contributions logged a CAGR of 20.6% between March 2017 and 2021, but from April 2021 to March 2026, contributions clocked a growth rate of 30.7%, attributed to higher investor participation post Covid-19. Cumulative gross SIP inflows between March 2017 and 2026 stood at ₹14.79 lakh crore, with nearly 76% of inflows coming in the past five years. The trend underscores the increasing scale and consistency of SIP participation, with SIP assets rising 3.5-fold between March 2021 and 2026. Over the same period, hybrid SIP AUM increased from ₹0.33 lakh crore to ₹1.11 lakh crore, while passive SIP AUM rose from ₹0.03 lakh crore to ₹0.46 lakh crore, suggesting a gradual broadening of investor preferences towards allocation-led and low-cost strategies.
There was a notable shift in SIP investment patterns across various age groups between March 2021 and March 2026. The proportion of SIP AUM to industry AUM increased significantly for those below 18 years from 37.3% to 46.0%, indicating growing inclination towards SIPs among younger investors. Investors between 35 and 58 years saw their proportion rise from 29.8% to 40.6%, while older investors above 58 years increasingly adopted SIPs, with their proportion rising from 11.4% to 20.6%. Meanwhile, investors between 18 and 34 years maintained a relatively stable presence at 32.7% in March 2026. This demographic diversification reflects the broadening appeal of systematic investment approaches across different age groups, with the proportion of SIP AUM to industry AUM increasing significantly across all age categories over the five-year period.
New investors should not simply replicate the current top 10 SIP categories as they reflect five years of past returns, according to financial experts. Sheetal Goel from Livemint reports that experts suggest a broad equity allocation of 50%-55% to large caps, 20%-25% to mid caps, and the balance to small caps. The shift highlights the importance of long-term asset allocation strategies rather than chasing recent performance, with experts emphasizing diversified fund categories over concentrated sectoral and thematic bets. Hybrid funds fell out of the top 10 SIP categories in 2026, indicating investors are taking greater control of asset allocation, while dividend yield and value funds saw moderation in SIP AUM penetration. The trend indicates SIPs are not only scaling up, but also deepening the quality and durability of retail participation in mutual funds, with investors increasingly adopting allocation-led and low-cost strategies for long-term wealth creation.
