Data from ValueMetrics’ latest Mutual Fund & SIF Flow Meter report showed that monthly SIP contributions remained above the ₹30,000-crore mark for the third consecutive month in May, even as net additions to SIP accounts recovered only marginally from near-zero levels.
Monthly SIP contributions stood at ₹30,954 crore in May, down 0.5% from ₹31,115 crore in April but up 16% from ₹26,688 crore a year ago. Over the past decade, the monthly SIP book has expanded almost tenfold, from ₹3,189 crore in May 2016 to the current levels.
However, growth in the number of SIP accounts paints a different picture.
Outstanding SIP accounts touched an all-time high of 1,047 lakh in May, up 15.5% year-on-year from 906 lakh, but only marginally higher than 1,044 lakh in April. The muted growth came despite healthy gross registrations.
Mutual funds registered 54.2 lakh new SIPs during May, while 51.7 lakh accounts were discontinued or completed their tenure. As a result, net new SIP additions stood at just 2.5 lakh accounts, recovering from net declines of 0.6 lakh each in March and April.
The slowdown is significant when compared with earlier peaks. Net SIP additions had reached 35.3 lakh accounts in July 2024 and 18.7 lakh in January 2026.
The data also points to rising investor churn. Gross SIP registrations accounted for 5.2% of outstanding accounts in May, while discontinuations were nearly as high at 5%. This narrowing gap raises questions about the stickiness of newer retail investors entering the market.
SIP assets under management (AUM) continued to rise, reaching ₹17.12 lakh crore in May, up 1.5% from ₹16.86 lakh crore in April and 17.1% higher than a year earlier.
At the broader industry level, total mutual fund AUM slipped 0.4% month-on-month to ₹81.6 lakh crore from ₹81.9 lakh crore in April. Active equity funds, however, continued to attract investors, with assets rising 1.1% to ₹36.1 lakh crore.
Active equity net inflows fell sharply by 40% month-on-month to ₹22,908 crore in May from ₹38,440 crore in April, while hybrid funds, excluding arbitrage schemes, received net inflows of ₹4,862 crore.
Meanwhile, the sharp rally in gold appeared to trigger some profit booking. Gold exchange-traded funds (ETFs) recorded net outflows of ₹725 crore in May, reversing inflows of ₹3,040 crore seen in April.
The latest data suggests that while Indian investors remain committed to long-term investing through SIPs and continue to deploy record amounts every month, the industry’s next challenge may be retaining investors and reviving net account growth rather than attracting fresh registrations alone.