Even as equity fund inflows logged the worst performance in the last 12 months, SIP (Systematic Investment Plans) investors continued to repose faith in investing. According to the latest AMFI data, SIP contributions stood at Rs 30,954 crore in May 2026, just marginally lower than Rs 31,115 crore collected in April.
According to AMFI data, 54.16 lakh new SIPs were started in May, while 51.70 lakh SIPs were closed or discontinued. This means that for every 100 new SIPs registered, about 95 were discontinued during the month, resulting in a SIP stoppage ratio of 95.46%.
The trend became particularly pronounced in March and April 2026, when SIP discontinuations actually exceeded fresh registrations. In both months, the SIP stoppage ratio crossed 100%, indicating that more SIP accounts were closed than opened.
Compared with May last year’s performance in the SIP segment, inflows in the month under review were nearly 16% higher. This is an encouraging pattern since it shows that Indian investors are becoming more disciplined and are looking at equities as a long-term wealth creation opportunity.
The strength of SIP inflows stands out against a backdrop of market uncertainty in May. The month was marked by heightened macroeconomic uncertainties, persistent geopolitical tensions in West Asia, concerns over stalled US-Iran negotiations, elevated crude oil prices, and pressure on the Indian rupee.
The slight dip in SIP inflows comes at a time when net equity fund inflows fell nearly 40% month-on-month, reflecting a more cautious investment environment. The SIP number is the most important data point, and it is telling a very different story from the equity inflow headline.
“While net equity fund inflows moderated in May, SIP contributions held above Rs 30,000 crore for the third consecutive month. That divergence is not a contradiction; it is actually the proof of concept for everything the mutual fund industry has been building over the last decade. The investor who set up a SIP two years ago is not checking whether this is a good month to invest; the instruction is already in place. What May’s data confirms is that the SIP habit is now structurally embedded in household financial planning at a scale that makes it largely immune to short-term market noise,” said Nitin Agrawal, CEO, Mutual Funds, InCred Money.
Despite fluctuations in the stock market during the first five months of 2026, SIP investors largely stayed committed to their long-term investment plans.
The year began on a positive note, with SIP inflows of Rs 31,000 crore mark indicating investors used SIPs to maintain exposure to equities despite concerns over global interest rates and geopolitical developments.
February witnessed increased volatility in domestic and global markets, leading to a modest decline in SIP contributions to Rs 29,845 crore. March emerged as a landmark month, with SIP contributions reaching a record Rs 32,087 crore. The surge suggested that investors viewed market weakness as an opportunity to buy on dips.
As markets stabilized and investor confidence improved, SIP inflows remained robust at Rs 31,115 crore in April. Although collections eased slightly from the March peak, they stayed comfortably above Rs 31,000 crore.
The January-May 2026 trend demonstrates the growing maturity of India’s retail investor base. Even as markets experienced bouts of volatility and equity fund inflows moderated, SIP collections consistently hovered around or above the Rs 30,000-crore mark.
“Investors are continuing with their SIPs despite volatility, staying committed to equities, and making allocation decisions based on valuations and opportunities rather than short-term market noise. This is a sign of a market that is steadily maturing, and if this trend continues,” said Feroze Azeez, Joint CEO, Anand Rathi Wealth.
The resilience in SIP contributions suggests that retail investors are continuing to stay invested despite market volatility and fluctuations in sentiment, and SIPs once again emerged as a pillar of stability for the industry, underscoring the confidence of retail investors in long-term wealth creation through mutual funds.
Disclaimer: The data, figures, and insights presented in this article are based on the latest monthly report released by the Association of Mutual Funds in India for May 2026. Mutual fund investments are subject to market risks, and past inflows, outflows, or fund performance do not guarantee future returns. The information is intended for educational and informational purposes only and should not be construed as investment advice. Investors should consult a qualified financial advisor before making any investment decisions.
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