Record SIPs reflect investor maturity; equity flow dip a healthy pause, say experts

India’s mutual fund industry continues to show strength despite a moderation in equity inflows in October. According to the recent AMFI data, equity inflows fell nearly 19% month-on-month to around ₹24,000 crore, down from ₹30,405 crore in September.

However, systematic investment plan (SIP) contributions hit a new record of ₹29,529 crore, signalling strong retail participation and growing investor discipline.

Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers, said the decline in net inflows should not be seen as a sign of weakness. “Gross inflows have remained stable,” she explained, adding that the moderation was largely due to profit booking, seasonal cash requirements during the festive month, and liquidity being diverted toward IPOs.

She also pointed out that the strong SIP trend is an encouraging signal for the industry.

The industry’s total assets under management (AUM) rose to a record ₹79 lakh crore in October, up from ₹75 lakh crore in the previous month.

Borthakur believes this growth reflects increasing market depth rather than overheating. She noted that mutual fund penetration in India remains low compared to global standards, and the shift from a “saving to an investing mindset” is driving structural growth.

Prableen Bajpai, Founder of Finfix Research & Analytics, shared a similar view, highlighting that the consistent rise in SIP flows demonstrates retail investor maturity. “The SIP book has more than doubled in the last three years,” she said.

Bajpai also noted that SIP stoppage rates fell in October, showing investors’ willingness to stay invested through market volatility.

Both experts agreed that the current moderation in equity flows is a healthy pause, not a cause for concern, as investors increasingly focus on long-term wealth creation through systematic investments.

Also Read | SIP inflows steady at ₹29,529 crore in October