India’s mutual fund industry has achieved a significant milestone, with equity mutual funds recording 63 consecutive months of net inflows through May 2026. That’s a number that deserves more attention than it got.
According to data from the Association of Mutual Funds in India (AMFI), equity mutual funds attracted net inflows of Rs 22,907 crore in May 2026. While this represented a decline of nearly 40% from April 2026’s Rs 38,440 crore, it extended the industry’s uninterrupted inflow streak that began in March 2021.
During 2020, SIP contributions declined for 11 consecutive months, and equity mutual funds saw net outflows for eight months before turning positive in March 2021. The contrast with 2026 is striking, despite the Nifty falling 6.4% in March 2026 (MoM) and FPIs selling a record Rs 1.18 lakh crore, SIP contributions still rose 7.5% to Rs 32,087 crore. Domestic mutual funds stepped in as buyers, driving FY26 MF net equity purchases beyond Rs 5 lakh crore, surpassing the previous record of Rs 4.7 lakh crore in FY25.
The data bears this out: even during the heightened volatility in recent months, SIP flows have maintained above Rs 30,000 crore. Folios are growing rather than shrinking in these months.
The data from AMFI tells a compelling story of scale and democratization. Monthly SIP contributions, which hovered around Rs 11,000 crore a few years ago, have now firmly established a baseline above the Rs 30,000 crore mark, as evidenced by the Rs 30,954 crore registered in May 2026.
This massive influx is driven by an expanding retail footprint, with the total number of contributing SIP accounts scaling past 9.9 crore, and overall SIP Assets Under Management (AUM) hovering near Rs 16.4 to Rs 16.6 lakh crore and recently reaching an all-time high of Rs 17.12 lakh crore as of May 31, 2026.
Additional SIP-related metrics for May 2026 include SIP AUM of Rs 17.12 lakh crore, share of total industry AUM of approximately 21%, and contributing SIP accounts of 9.64 crore. These figures highlight the massive scale that SIP investing has achieved in India.
AMFI data shows that cumulative SIP inflows in calendar year 2025 crossed Rs 3 lakh crore for the first time, surpassing the previous record of Rs 2.69 lakh crore in 2024. This milestone demonstrates the growing role of regular investments in household financial planning.
While equity mutual fund inflows moderated in May 2026 and FPIs sold heavily, retail investors continued to invest through SIPs. As per AMFI, with Rs 30,953.83 crore in monthly SIP inflows, 9.64 crore contributing accounts, Rs 17.12 lakh crore in SIP AUM, and cumulative annual SIP investments exceeding Rs 3 lakh crore, domestic investors are emerging as the primary drivers of capital market participation in India.
As investors mature, they look for predictable, benchmark-linked long-term performance, and SIPs serve as the perfect vehicle to accumulate those assets efficiently and consistently.
SIP stoppage ratio remains a key metric to watch
While SIP inflows remain robust, the SIP stoppage ratio continues to attract attention. Historical data from AMFI shows the following trend:
41% in 2021
51% in 2022
43% in February 2023 (27-month low)
88% in May 2024
109% in January 2025
74.83% in January 2026
75.62% in February 2026
Around 76% in March 2026
Although the ratio has moderated from the extreme levels seen in 2025, it remains elevated compared with earlier years, indicating that a sizeable number of investors continue to discontinue SIPs even as new registrations remain strong.
Equity mutual funds have now seen positive inflows for 63 consecutive months. How significant is this streak, and what does it tell us about the evolution of retail investors in India?
63 months of equity mutual funds logging net positive inflows.
“What we’re witnessing is a fundamental shift from episodic investing driven by market sentiment to systematic participation driven by goal-based investments. We are seeing a structural change in people from being savers to investors. A few years ago, outflows were almost a predictable response to market turbulence. Today, Systematic Investment Plan (SIP) inflows are holding steady across multiple cycles of volatility, global uncertainty, and valuation exuberance,” commented Gaurav Goyal, Chief Business Officer, Canara Robeco AMC.
“A streak running since March 2021 that has now survived election cycles, rate hikes, and a war-driven sell-off. May 2026’s net equity MF inflow of Rs 22K crore was the weakest of the year, down 40% from April’s ~ Rs 38K crore. But the streak itself didn’t break,” said Thomas Stephen Director & Head – Preferred, Anand Rathi Shares and Stock Brokers.
This shows a structural shift in investor behaviour.
SIP inflows have fuelled this long streak.
SIP collections have risen from Rs 43,921 crore in FY17 to over Rs 1 lakh crore in FY20, before Covid disrupted the trend and pulled FY21 collections down to Rs 96,080 crore.
“The resilience of SIP flows during market corrections suggests that Indian retail investors have evolved into disciplined, long-term investors, transforming from reactive participants into a structural force supporting domestic equity markets,” said Thomas Stephen.
To what extent has SIP investing changed investor behaviour during market corrections? Are investors today less likely to stop investing or redeem their holdings during periods of volatility?
SIP investing has clearly improved investor discipline during market corrections. As mentioned earlier, despite a Nifty drop of 6.4% (MoM) in March 2026 and FPIs selling a record Rs 1.18 lakh crore, SIPs still cushioned equity inflows and rose 7.5% to Rs 32,087 crore.
However, investors are not completely immune to volatility. The SIP stoppage ratio has increased from 41% in 2021 to around 75-76% in early 2026, although this figure also includes SIPs that completed their tenure.
SIP has fundamentally changed the nature of the investor’s relationship with volatility. What it does, practically, is remove the need to make an active decision every month — the investment happens automatically, regardless of what markets are doing.
“We saw this play out quite clearly during recent bouts of volatility — SIP contributions held up even as lump-sum flows showed near-term caution, and investors used hybrid categories like arbitrage funds as a transitional parking space rather than exiting equity altogether. It shows investors are making considered choices about managing short-term uncertainty while keeping their long-term allocations intact,” said Suranjana Borthakur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India).
The key difference today is the scale of automated investing, with 9.64 crore SIP accounts contributing Rs 30,953 crore in May 2026 and reducing emotional decision-making during market declines. SIPs have become a structural source of market stability, though their resilience remains untested through a very long, prolonged bear market.
“This explains the conviction of investors in the India growth story. Investors are now increasingly treating market dips as a feature of the SIP process rather than a reason to pause. Investors are seen investing for their medium and long-term goals through goal-based SIPs,” commented Gaurav Goyal.
Can this long inflow streak continue if markets go through a prolonged correction, or will investor behaviour be truly tested only during a major bear market?
“It is natural to question the resilience of this inflow streak when looking at a potential market downturn. However, treating a bear market as a structural threat to the SIP thesis overlooks how retail investors responded during recent localized drawdowns and sector-specific corrections,” said Aditya Mulki, CEO, Navi AMC.
A prolonged correction or a true bear market will undoubtedly test investor nerves, but it is unlikely to trigger a wholesale collapse of the SIP ecosystem, Aditya Mulki further added.
Suranjana Borthakur says we haven’t yet seen this investor base navigate a prolonged, deep bear market — one where portfolios are meaningfully negative for an extended period.
“The current streak reflects resilience across multiple short-to-medium volatility episodes, and that’s encouraging. But the real behavioural test comes when investors see negative returns on portfolios they’ve been building patiently, and the timeframe for recovery is unclear,” Suranjana Borthakur added.
At that point, the role of financial advisors and distributors becomes critical in reinforcing the long-term rationale, contextualising the correction, and preventing decisions driven by short-term pain.
Compared with previous market cycles, are retail investors becoming more disciplined and long-term oriented, or are we simply seeing the effect of strong SIP inflows masking underlying nervousness?
Yes, compared with previous cycles, investors are becoming more mature. They now understand that for wealth creation, time in the market is more important than timing the market, said Gaurav Goyal.
It’s both, and I think it’s important to be precise about that. SIP inflows have created a structural floor for equity participation, and that’s a meaningful achievement in itself. But the nature of those flows is also changing.
“We’re seeing greater interest in diversified categories. Flexi-cap funds, for instance, have captured a significant share of year-to-date equity inflows, which reflects a preference for flexibility over return-chasing in a single market cap segment. Investors are also gravitating toward multi-asset and balanced allocation strategies, not because those are the current best performers, but because they understand the risk management rationale,” commented Suranjana Borthakur.
Do you think the growing SIP culture is making equity fund flows more stable and reducing the impact of panic selling? What could this mean for future market cycles?
A large and growing SIP book does contribute to greater flow stability — it creates consistent buying activity that is structurally independent of short-term market direction.
“We’ve seen this in recent months, where equity inflows remained positive and relatively resilient despite global headwinds, FPI outflows, and geopolitical uncertainty. The presence of steady domestic participation has been an important counterweight. Over time, as the SIP book deepens and more investors accumulate multi-year investment histories, this stabilising effect should become more pronounced,” stated Suranjana Borthakur.
For future market cycles, this matters because it changes how corrections are absorbed — the intensity and duration of drawdowns could be moderated by the continuous inflow of domestic capital.
Disclaimer: This article is intended for informational and educational purposes only and should not be construed as investment advice. Mutual fund investments are subject to market risks, including the possible loss of principal. Past trends, SIP inflows, and historical performance do not guarantee future returns or market outcomes. Investors should carefully consider their financial goals, risk tolerance, and investment horizon, and consult a qualified financial advisor before making any investment decisions. Data and views cited in the article are based on publicly available information and expert opinions available at the time of writing.
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