India’s mutual fund industry recorded a new milestone in December, with Systematic Investment Plan (SIP) inflows touching an all-time high of ₹31,002 crore, according to the latest data released by the Association of Mutual Funds in India (AMFI). This marks a clear increase from November’s SIP collections of around ₹29,445 crore, underlining the growing preference among retail investors for disciplined, long-term investing despite market volatility.

Key Highlights

• SIP inflows rose to a record ₹31,002 crore in December, reflecting strong retail investor confidence.
• Despite SIP growth, overall mutual fund industry saw net outflows due to higher redemptions.

The sustained rise in SIP contributions reflects strong investor confidence in equities as a wealth-creation tool, even as short-term market movements remain uncertain. Financial experts say SIPs continue to gain traction as investors focus on rupee-cost averaging and long-term financial goals rather than attempting to time the market.

However, the broader mutual fund landscape showed mixed trends during the month. Net inflows into equity mutual funds declined by roughly 6% on a month-on-month basis, largely due to increased redemptions. As a result, the overall mutual fund industry reported net outflows in December, as withdrawals exceeded fresh investments across several categories.

Debt funds and liquid schemes also saw pressure, while gold exchange-traded funds (ETFs) and certain hybrid funds attracted steady inflows, indicating that investors are diversifying their portfolios amid global economic uncertainty and fluctuating interest rate expectations.

Also Read: AMFI Data: Equity Flows Slow, Hybrid & PFs Rise as SIPs Surge

Market participants believe the strong SIP numbers highlight a structural shift in retail investing behaviour, driven by greater financial awareness, wider digital access, and sustained participation from younger investors. With SIP inflows consistently setting new records over recent months, analysts expect this trend to provide long-term stability to Indian equity markets, even if near-term flows across other fund categories remain uneven.

Overall, December’s data reinforces the view that retail investors are staying committed to systematic investing, even as broader market sentiment remains cautious.