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SIP Stays Strong Despite Equity MF Slump—Is This a Market Shift?


Updated: June 10, 2025 17:18

Image Source: The Tribune
The Association of Mutual Funds in India (AMFI) has reported a sharp decline in net equity mutual fund inflows, which fell 21.66% monthonmonth to ₹19,013 crore in May 2025, marking the lowest inflow in a year. Despite this downturn, Systematic Investment Plan (SIP) contributions remained robust, reflecting continued retail investor confidence.
 
Key Highlights:
  • Equity MF Inflows Decline: Net inflows into equity mutual funds dropped to ₹19,013 crore, down from ₹24,253 crore in April, amid profit booking and cautious sentiment.
  • Market Performance: The Sensex rose 1.5% and Nifty 50 gained 1.7% in May, but investors remained wary of stretched valuations and geopolitical uncertainties.
  • Largecap Funds Hit Hard: Inflows into largecap funds plunged 53.19% to ₹1,250 crore, while midcap and smallcap funds saw declines of 15.25% and 19.64%, respectively.
  • SIP Contributions Stay Strong: SIP investments rose marginally to ₹26,688 crore, up from ₹26,632 crore in April, indicating steady retail participation.
  • Debt Fund Outflows: Debt mutual funds witnessed net outflows of ₹15,908 crore, reversing the ₹2.19 lakh crore inflow in April, with liquid funds seeing the highest redemptions.
Despite the equity inflow slowdown, SIP investments remain a bright spot, showcasing investor preference for disciplined, longterm investing.
 
Sources: Tribune India, Business World, Outlook Money

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