Net SIP Inflows Surge to Record ₹2 Trillion in FY26 Despite Equity Market Volatility
Net systematic investment plan (SIP) inflows reached a record high of ₹2 trillion in financial year 2025-26 (FY26), representing 56 per cent of ₹3.5 trillion in gross investments. According to data from the Securities and Exchange Board of India (Sebi), this resilient performance occurred despite rising account closures and broader equity market turbulence.
The Bottom Line
- Record Net Inflows: Net SIP inflows hit ₹2 trillion in FY26, climbing from 54 per cent to 56 per cent of gross investments compared to FY25.
- Muted Account Growth: SIP accounts added just 4 million in FY26, a sharp deceleration from the 17 million net additions recorded in FY25 due to ongoing market corrections.
- Slowing Redemptions: Outflows totaled ₹1.5 trillion, registering the slowest redemption growth rate in three years at 15 per cent.
Dissecting the FY26 SIP Ledger and Redemption Mechanics
Here is the math: net SIP inflow is calculated by stripping redemptions away from gross investments. While the Association of Mutual Funds in India (Amfi) regularly publishes headline gross figures, the underlying net metrics tell a far more revealing story about domestic investor conviction.
Outflows for FY26 landed at ₹1.5 trillion, up 15 per cent from ₹1.3 trillion in FY25. But the balance sheet tells a different story regarding momentum. That 15 per cent increase is a stark deceleration when measured against historical figures. Outflows spiked 57 per cent in FY24 and grew 18 per cent in FY25, demonstrating that panic selling has largely given way to structural allocations.
Market turbulence has persisted since September 2024. Over the two-year window ending March 2026, the Nifty 50 index declined over 5 per cent, while the Nifty Smallcap 250 index remained flat. The Nifty Midcap 150 managed a modest gain of 6 per cent.
Institutional Perspectives on Retail Maturity
Industry leaders point to an institutionalized mindset taking root among everyday retail savers.
“SIPs have truly become a meaningful part of household savings in India. What started off as an entry point into equity investing for most people has now evolved into a disciplined, long-term allocation strategy. This shift is clearly visible in the data — even as gross SIP inflows have grown, net inflows have remained equally robust,” noted Suranjana Borthakur, head of distribution & strategic alliances at Mirae Asset Mutual Fund.
Growth Metrics: FY25 Versus FY26
| Financial Metric | FY25 | FY26 | YoY Trajectory |
|---|---|---|---|
| Net SIP Inflows | 54 per cent of Gross | 56 per cent of Gross (₹2 Trillion) | Expanded Share |
| SIP Outflows / Redemptions | ₹1.3 Trillion | ₹1.5 Trillion | Grew 15 per cent (Slowest in 3 Years) |
| Net SIP Account Additions | 17 Million | 4 Million | Declined due to Market Correction |
Macroeconomic Implications and Forward Trajectory
While the volume of capital moving into mutual funds via automated channels remains robust, the acquisition of new accounts has clearly cooled. Sebi records indicate that SIP accounts grew by only 4 million in FY26, a sharp drop from the nearly 17 million net additions achieved in FY25.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
