Inflows into mutual fund schemes through Systematic Investment Plans (SIPs) saw a slight decline in April, totaling ₹31,115 crore compared to ₹32,087 crore in March, amid increasing volatility in equity markets. The number of SIP accounts contributing also dropped to 9.65 crore from 9.72 crore in the previous month. However, SIP assets increased to ₹16.85 lakh crore from ₹15.11 lakh crore, despite significant market fluctuations and ongoing foreign portfolio investor withdrawals from India.
The number of SIP accounts that were discontinued reached 51.21 lakh, slightly above the 50.71 lakh new SIP accounts opened during April. Venkat Chalasani, CEO of the Association of Mutual Funds in India (AMFI), clarified that the higher number of SIP stoppages compared to new accounts may stem from recent Sebi regulations that classify a SIP as discontinued if payments are not made for three consecutive months.
Chalasani further noted that the inflow figures from March were unusual, as they included the last four days of February, which were market holidays. AMFI maintains that it is premature to determine whether the dip in SIP inflows indicates a broader trend, even though market volatility may have influenced investor sentiment. Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers, emphasized that the modest reduction in SIP inflows should not be interpreted as a slowdown, especially given previous elevated numbers due to carried-over inflows. She highlighted that maintaining SIP inflows around the ₹31,000-crore level demonstrates stable participation from retail investors.
Equity mutual fund inflows also experienced a 5 percent decline in April, dropping to ₹38,440 crore from ₹40,450 crore in March. A. Balasubramanian, Managing Director and CEO of Aditya Birla Sun Life AMC, remarked that continued engagement in mutual funds amid market volatility signifies the growing maturity and resilience of retail investors, who are increasingly adopting diversified allocation strategies. This trend suggests a thoughtful approach to wealth creation, with investors focusing on asset allocation, stability, and long-term goals amidst global uncertainties.
Navneet Munot, MD and CEO of HDFC Asset Management Company, commented that the stability in equity flows reflects the increasing sophistication of the investor base and heightened awareness of systematic investment advantages. He noted that while markets will always be influenced by geopolitical factors, current data indicates that long-term financial objectives are increasingly guiding investment decisions over short-term market fluctuations.
In terms of commodity investments, Gold ETFs attracted ₹3,040 crore in April, up from ₹2,265 crore in March, while outflows from silver ETFs decreased to ₹125 crore from ₹684 crore, as investors capitalized on price declines to enhance their allocations.
The article was published on May 11, 2026.
