Within equity categories, flexi-cap funds witnessed a notable pickup in inflows, suggesting that investors are favouring strategies offering flexibility across market capitalisations amid uncertain market conditions.
Market observers said the data points to a shift in investor behaviour rather than a retreat from equities. Himanshu Srivastava, Principal Manager – Research at Morningstar Investment Research India, said equity participation remained structurally intact, but investors were becoming more selective, with greater emphasis on diversification, portfolio balance and risk management rather than broad-based risk-taking.
Despite intermittent volatility, flows remained resilient, supported by steady SIP contributions and continued confidence in India’s long-term growth prospects, Srivastava added.
The strong SIP numbers also reflect the widening retail investor base. Rising participation from Gen Z investors, women and households in smaller cities and towns has strengthened the SIP ecosystem, positioning it for sustained growth in 2026.
For the first time, cumulative SIP investments in a calendar year have crossed Rs 3 lakh crore. AMFI data showed SIP inflows touched Rs 3.04 trillion up to November, compared with Rs 2.69 trillion in 2024.
Industry analysts say SIPs have emerged as a key growth driver for the mutual fund sector, supported by digital adoption and the gradual shift of household savings towards financial assets. According to ICRA Analytics, these trends, combined with sustained net inflows and market expansion, could help India’s mutual fund industry assets under management surpass Rs 300 trillion by 2035.
With IANS inputs