SIPs hit a new milestone: 10 Cr accounts, Rs 18.62 lakh crore in assets and rising

Systematic investment plans (SIPs) continued to gain ground among mutual fund investors in August. Monthly SIP contributions rose to Rs 32,297 crore last month and the number of contributing accounts crossed the 10-crore mark, according to data released by the Association of Mutual Funds in India (AMFI) on Thursday.

SIP contributions increased 1.1% in August from Rs 31,961 crore in July. The number of contributing SIP accounts also rose to 10.02 crore from 9.90 crore a month earlier. This means the industry added about 12 lakh SIP accounts in just one month.

The rise in SIP contributions came even as the overall mutual fund industry saw a much slower increase in assets in August. The industry’s assets under management (AUM) rose 1.5% to Rs 87.08 lakh crore at the end of August from Rs 85.76 lakh crore in July. The industry added Rs 1.32 lakh crore in AUM during the month.

SIPs are also becoming a larger part of the mutual fund industry. SIP assets rose 2.3% in August to Rs 18.62 lakh crore from Rs 18.20 lakh crore in July. Their share of total mutual fund assets increased to 21.4% from 21.2%.

The August numbers also show that SIP contributions are holding up despite the month-to-month movement in the broader market and mutual fund flows. On a year-on-year basis, SIP contributions were up 14.3% in August. In July, the year-on-year growth was 12.3%.

SIP growth has been steady through 2026

The SIP numbers have remained fairly strong through the year. Monthly contributions stood at Rs 31,002 crore in January and moved above Rs 32,000 crore in March. They then remained close to the Rs 32,000-crore level in July and August.

In August, contributions reached Rs 32,297 crore, compared with Rs 31,961 crore in July and Rs 31,781 crore in June. At the same time, contributing SIP accounts rose from 9.90 crore in July to 10.02 crore in August.

The crossing of 10 crore accounts is significant because it shows that the growth in SIPs is not only coming from existing investors putting in more money. The investor base itself continues to expand.

AMFI said the milestone reflects the growing popularity of SIPs as a preferred investment avenue among investors.

Harish Krishnan, CIO – Equity, Aditya Birla Sun Life AMC Ltd, says, “The continued strength in equity flows reflects the constructive outlook that investors have towards equities. Equity schemes saw net inflows of Rs 29,329 crore in August, with small-cap funds seeing the highest inflows among equity categories at Rs 7,973 crore, followed by mid-cap and flexi-cap funds.”

“This indicates continued participation in the broader market and confidence in India’s long-term growth opportunity. At the same time, the small-cap segment remains one where differentiation is important, given the wide dispersion in valuations and underlying fundamentals. In such an environment, the focus is increasingly on businesses with improving earnings visibility, sustainable competitive advantages and sound balance sheets, rather than on near-term momentum alone.”

Equity funds also saw stronger inflows

The strong SIP numbers came alongside higher inflows into equity mutual funds.

Equity funds received Rs 29,329 crore in August, up from Rs 24,697 crore in July. That is an increase of Rs 4,632 crore, or about 19%. August marked the 66th consecutive month of positive equity fund flows.

Small-cap funds remained the biggest draw among equity categories, attracting Rs 7,973 crore in August compared with Rs 7,768 crore in July. Mid-cap funds saw a bigger month-on-month increase, with inflows rising to Rs 6,989 crore from Rs 6,192 crore.

Flexi-cap funds also continued to attract investors, with inflows rising to Rs 5,059 crore from Rs 4,709 crore. AMFI said small-cap, mid-cap and flexi-cap funds together accounted for about 68% of total equity fund inflows in August.

Equity fund assets increased 2.2% to Rs 39.21 lakh crore in August from Rs 38.36 lakh crore in July. The increase was supported by both fresh inflows and market gains.

Overall mutual fund AUM rises to Rs 87.08 lakh crore

The total mutual fund industry AUM stood at Rs 87.08 lakh crore at the end of August, compared with Rs 85.76 lakh crore in July.

The month-on-month growth, however, slowed sharply. AUM had risen 4.3% in July, but increased only 1.5% in August. AMFI attributed the August increase to positive net inflows and mark-to-market gains.

The industry added 26.54 lakh mutual fund folios in August, taking the total number of folios to 28.35 crore. This was up 0.9% from 28.09 crore in July. Equity funds accounted for 66.7% of the total folios, while the passive category accounted for another 19.6%. Together, equity and passive funds made up about 86% of the industry’s folios in August.

Debt funds tell a very different story

While SIP and equity flows remained strong, debt mutual funds saw a sharp change in investor flows.

Debt funds recorded a net outflow of Rs 8,127 crore in August. This was a major reversal from the Rs 1.88 lakh crore inflow recorded in July. The swing between the two months was about Rs 1.96 lakh crore.

The change was particularly visible in overnight and liquid funds. Overnight funds moved from a Rs 40,413-crore inflow in July to a Rs 30,654-crore outflow in August. Liquid fund inflows also fell sharply from Rs 1.19 lakh crore in July to Rs 19,934 crore in August.

Despite this sharp change in flows, debt fund AUM remained almost unchanged at Rs 19.33 lakh crore in August. AMFI said liquid and money market funds continued to attract money, which partly offset outflows from overnight and longer-duration categories.

This contrast is important. The August data shows that short-term debt flows can change sharply from one month to another, while SIP investing continues to show a much steadier pattern.

Hybrid funds see a modest slowdown

Hybrid funds also attracted money in August, but inflows were lower than in July.

Hybrid funds received Rs 10,045 crore in August compared with Rs 11,491 crore in July, a decline of about 13%. At the same time, their AUM increased 1.6% to Rs 11.86 lakh crore from Rs 11.68 lakh crore.

Multi-asset allocation and arbitrage funds together accounted for about 74% of total hybrid inflows in August. Multi-asset funds also recorded their 60th consecutive month of positive flows.

SIFs emerge as another growing segment

Another notable development in the August data was the continued growth of specialised investment funds, or SIFs.

SIF assets rose 34.5% in August to Rs 31,175 crore. The category received Rs 7,699 crore in inflows during the month. In July, SIF assets stood at Rs 23,177 crore and the category had received Rs 4,922 crore.

This makes SIFs one of the faster-growing segments of the mutual fund industry, although its asset base is still small compared with traditional equity, debt and hybrid categories.