SIP Inflows Cross Rs.26,000 Crore Mark for Second Straight Month

SIP inflows remained robust in January 2025 as investors invested more than Rs.26,000 crore for the second consecutive month. As per Association of Mutual Funds in India (AMFI) figures, Rs.26,400 crore was invested, a fraction less than Rs.26,459 crore invested in December 2024. Investors were unwavering in their faith in SIPs, despite the market volatility, with reposing of confidence in generating long-term wealth.

Increased SIP Participation

SIP accounts rose to 10.26 crore during January, showing increased retail investor interest. Another 56.18 lakh SIPs were activated in the period, another pointer to increased enthusiasm for systematic investing.

The country’s domestic industry AUM crossed Rs. 67.25 lakh crore, a gigantic 27.52% higher from the previous year. While markets were volatile, SIP investments held steady at Rs. 26,400 crore.

Equity mutual funds remained favourite among retail investors, and January was the 47th month of uninterrupted net inflows in this segment. Market corrections were seen as opportunities to invest and, therefore, there were consistent inflows even with volatility.

Why are Investors Holding on to SIPs?

SIP is increasingly becoming a popular investment choice because of inherent strengths like:

• Systematic Investing: Investment by a system brings consistency and facilitates wealth generation in the long run.
• Rupee Cost Averaging: Investors buy more units in down markets and fewer units in up markets, thus lowering the risk as a whole.
• Compounding Power in SIPs: Long-term investment makes money grow at a higher rate as the money gained as returns are invested again, and this leads to enormous wealth creation.

How to Start an SIP?

If you want to start an SIP, simply follow these simple steps:

1. Selection of Mutual Fund: Choose a mutual fund and invest in equity, debt or hybrid funds depending on your risk and your future requirements.

2. Register Online or with an AMC: Then you need to sign up either through a bank, broker, or a fintech app.

3. Fix Investment Frequency and Amount: Start investing a minimum of Rs.500 a month and choose between weekly, monthly or quarterly investments.

4. Auto-debit: Link your bank account for hassle-free and fast payments.

SIPs Continue to Grow Among Investors

While overall equity investments dropped to Rs.39,669.6 crore from Rs.41,136 crore in December, SIPs remained firm. More and more investors are now viewing market declines as great buying opportunities rather than reasons to sell.

With SIPs becoming popular and easily accessible, more people are choosing to invest in SIPs to create their wealth in a disciplined way. The growth in SIP investors shows that people desire a convenient and disciplined method of investment, and thus SIPs are one of the main drivers of mutual fund investments.