India’s mutual fund industry has reached a new milestone in June 2025, with Systematic Investment Plan (SIP) contributions hitting an all-time high of ₹21,400 crore, according to the latest data released by the Association of Mutual Funds in India (AMFI). This surge reflects growing investor confidence and a strong preference for disciplined, long-term investment strategies despite global economic uncertainties.
The number of new SIP accounts also rose sharply, crossing the 8 crore mark for the first time, indicating a widening retail participation base. Industry experts attribute this growth to sustained awareness campaigns, simplified digital onboarding processes, and the superior returns generated by equity mutual funds over the past year.
Key Highlights:
- Total SIP inflows in June 2025: ₹21,400 crore (up from ₹20,700 crore in May 2025)
- Number of active SIP accounts: 8.01 crore
- Equity mutual funds saw net inflows of ₹37,800 crore, driven largely by SIPs
- SIP contribution now accounts for over 60% of total retail mutual fund investments
Rising Tier 2 & 3 Participation
Interestingly, smaller cities are emerging as major contributors to SIP growth. Tier-2 and Tier-3 towns now account for over 30% of new SIP registrations, driven by fintech platforms, financial influencers, and vernacular investment content.
Outlook for H2 2025:
Fund managers remain optimistic about the second half of the year, expecting SIP flows to remain strong, especially in equity-oriented schemes. However, they also caution investors to maintain realistic return expectations and continue investing with a long-term horizon.
As mutual funds solidify their place in the average Indian’s financial portfolio, SIPs are proving to be more than just a trend—they’re becoming a cornerstone of smart personal finance planning.
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