Systematic investment plan (SIP) inflows have reached a historic milestone, crossing ₹30,000 crore per month according to HDFC AMC Managing Director and CEO Navneet Munot. As reported by ET Now, this represents a dramatic increase from just over ₹3,000 crore in 2016, demonstrating the sustained growth in retail investor participation. The latest data from AMFI shows SIP contributions remained steady at ₹30,954 crore in May 2026, marking a marginal 0.5% decrease from ₹31,115 crore in April. This figure represents the fourth consecutive month in which SIP inflows held above or close to the ₹31,000 crore mark, sustaining the structural uptrend even as lump-sum equity flows moderated sharply. According to The Hindu BusinessLine, contributing SIP accounts also moved down to 9.64 crore from 9.65 crore in April, with the number of new SIP accounts opened at 54.16 lakh while closed/matured accounts were 51.70 lakh, resulting in overall live SIP accounts of 10.46 crore.
Actively managed equity mutual funds recorded net inflows of ₹22,908 crore in May 2026, marking the lowest monthly equity inflow recorded so far in 2026 and a sharp pullback of 40% from ₹38,440 crore in April. Large-cap funds saw inflows of ₹1,592.93 crore, down 36.9% from ₹2,524.61 crore in April, while mid-cap funds recorded ₹4,385.06 crore, falling 33.1% versus ₹6,551.40 crore. Small-cap funds received ₹4,945.57 crore, declining 28.2% compared with ₹6,885.90 crore in April. Flexi-cap funds saw inflows of ₹5,175.54 crore, down 49% against ₹10,147.85 crore in April, while sectoral and thematic funds recorded ₹647.87 crore, down 66.8% from ₹1,949.36 crore. The Hindu BusinessLine reports that hybrid schemes inflow was down at ₹10,560 crore (₹20,565 crore) while debt funds registered an outflow of ₹96,949 crore (₹2.47 lakh crore) in May. The industry registered a net outflow of ₹64,021 crore (₹3.22 lakh crore) with overall AUM sliding marginally to ₹81.58 lakh crore (₹81.92 lakh crore).
Despite market volatility, Bernstein's survey revealed that nearly one in three respondents said they would wait only another 3 to 12 months before reassessing their SIP allocations if market performance remains lacklustre, with another 17% saying they could wait up to two years before reconsidering allocations. However, the brokerage cautioned that investor patience may not be unlimited during prolonged periods of weak returns. HDFC AMC's Munot noted that about 38% of respondents claimed they would continue SIP investments even if markets fail to generate returns over the next three years. The report added that Bernstein noted that actual investor behaviour during periods of sustained underperformance could differ from stated intentions, highlighting the potential for unexpected changes in investor behaviour during challenging market conditions. As per The Hindu BusinessLine, Venkat Chalasani, CEO, AMFI, said the SIP inflows has remained above ₹30,000-mark despite the lower SIP inflows and market volatility reflects investors confidence in MF and long-term growth prospects of India.
While foreign institutional investors (FIIs) have remained net sellers in recent months, domestic investors continue to demonstrate remarkable resilience. HDFC AMC's Munot highlighted that "we have seen continuing resilience from domestic investors while foreign portfolio investors have been net sellers" during periods of market volatility. Bernstein had previously noted that investors in regular mutual fund plans appeared more resilient compared to direct-plan investors, with direct-plan investors showing greater sensitivity to returns. Despite near-term caution, Bernstein maintained a constructive long-term view on domestic flows, saying SIPs continue to remain deeply embedded in India's retail investment ecosystem. The sustained growth in SIP inflows demonstrates the structural shift toward systematic investing among Indian retail investors, even as volatile equity markets and global uncertainty take their toll on overall mutual fund inflows.
