Systematic Investment Plan (SIP) inflows in India reached a historic peak of ₹26,688 crore (approximately AED 11.75 billion) in May 2025, marginally surpassing April’s ₹26,632 crore, according to the latest data released by the Association of Mutual Funds in India (AMFI) on Tuesday.
The milestone reflects growing investor confidence in India’s mutual fund industry, especially among retail investors. For Dubai-based NRIs and international investors closely watching India’s capital markets, this continued momentum underscores a robust long-term investment trend.
“The highest-ever inflow of SIP shows that people are investing in mutual funds from a long-term perspective,” AMFI noted in its report.
The number of active SIP accounts surged to 8.56 crore (85.6 million) in May, up from 8.38 crore in April—an indicator of sustained retail participation.
“Investor preferences are evolving. There’s a clear lean toward equity and hybrid funds, driven by long-term growth outlooks and a cautious stance on debt. Retail participation is also surging. The mutual fund revolution is becoming mainstream,” said Narender Singh, smallcase Manager and Founder of Growth Investing.
The Assets Under Management (AUM) under SIPs rose sharply to ₹14.61 lakh crore (AED 6.43 trillion), from ₹13.90 lakh crore in April. SIP AUM now accounts for 20.24% of the Indian mutual fund industry’s total AUM, compared to 19.9% in the previous month.
Despite the inflow surge, AMFI data revealed a rise in SIP account closures. Around 59 lakh SIP accounts were terminated in May, while 43 lakh were either closed or matured, bringing the total number of SIP accounts to 9.06 crore.
“SIP numbers over ₹26,000 crore are very encouraging, which implies that the fresh investment preferred route has been SIP rather than lumpsum,” said Akhil Chaturvedi, Executive Director and Chief Business Officer at Motilal Oswal AMC.
Meanwhile, total AUM for equity mutual funds reached ₹72.2 lakh crore in May, up 4.85% from April’s ₹70 lakh crore, driven by market momentum and disciplined SIP contributions.
Analysts suggest that while investors are maintaining their exposure to equities, they are becoming increasingly selective in their approach. Equity flows are slowing, debt funds are stabilizing, and hybrid and passive categories continue to attract interest, particularly among younger investors and on digital-first platforms.
For UAE-based investors with exposure to the Indian market, these developments underscore the importance of SIPs as a consistent and long-term wealth-building mechanism amid fluctuating market conditions.
–Input IANS
