MUMBAI: Monthly inflows into Systematic Investment Plans (SIPs) crossed Rs 31,000 crore for the first time. This marked a 5% rise from the previous month and a 17% increase compared to last year.
However, inflows into equity mutual funds fell by 6% to Rs 28,054 crore in December. As a result, the overall assets under management (AUM) declined for the first time in many years, slipping 0.71% to ₹80.23 trillion from Rs 80.8 trillion in the previous month. The industry also recorded net outflows of Rs 66,571 crore during the month.
According to the latest data from the industry lobby Association of Mutual Funds (Amfi) Friday, the inflows into SIPs scaled to Rs 31,002 crore, a first for the segment, in December from SIP inflows hit a record Rs 31,002 crore in December, up from Rs 29,445 crore. This is Rs 16.63 trillion or 20.7% of the total assets.
SIP accounts rose to 9.79 crore, with 60.46 lakh new SIPs registered in the month and the adjusted SIP stoppage ratio was 55%, and the overall at 85%.
Investors have poured over Rs 3 trillion into schemes through systematic investment plans until November, for the first time in a calendar year. The data from Amfi show earlier that SIP inflows in the calendar year touched Rs 3.04 trillion for the first time, up from Rs 2.69 trillion in 2024.
SIPs have emerged as one of the strongest and most reliable engines of growth for the industry. Sustained net inflows, strong market performance, and deepening retail participation, aided by digitisation and financialisation of savings, have contributed to the steady surge in AUM, according to Icra Analytics.
During December, the industry registered 60.46 lakh new SIPs, higher than 57.13 lakh SIPs registered in November, while 51.57 lakh SIPs were discontinued or matured, compared with around 43 lakh SIPs in the previous month.
The number of contributing SIP accounts increased to 9.79 crore in December, compared with 9.43 crore in November, reflecting steady growth in retail participation.
Meanwhile, gold ETFs also registered strong inflows of Rs 11,647 crore in December, up more than 200% from Rs 3,742 crore in November. This is the strongest monthly inflow into gold ETFs in the past five months.
The surge stands out compared to October and September, when inflows were Rs 7,743 crore and Rs 8,363 crore respectively. December numbers also mark a clear acceleration from August, when gold ETF inflows were relatively modest at Rs 2,190 crore.
The industry AUM stands declined to Rs 80.23 trillion or Rs 80,23,379 crore for the month down from Rs 80.80 in November. But the average AUM for the month rose crossed the Rs 81 trillion mark at Rs 81,98,944.33 crore (Rs 81.98 trillion) of which retail AUM stood at Rs 47,35,764 crore.
Total folios rose to 26,12,53,836 with 26.40 lakh net folios being added in the month. Folios in November stood at 25,86,14,320. Of this retail folios were 20,27,86,198 up from 20,15,85,661.
This is the 58th month of positive equity inflows, starting from March 2021, Amfi chief executive Venkat Chalasani said and attributed the moderation in the overall AUM to primarily to debt fund outflows for liquidity management and limited market-related valuation changes.
“On an on-year basis, industry AUM grew by 19.9%, reflecting increased participation and continued adoption of mutual funds across investor segments,” Chalasani said.
SIP monthly contributions have touched an all-time high of over Rs 31,000 crore, taking SIP assets to Rs 16.63 trillion or 20.7% of the total assets.
A total of 29 schemes were launched in December, all open-ended and across categories, raising a total of Rs 5,773 crore.
Sanjay Agarwal, a senior director with Care Ratings said, the 0.71% decline in AUM was due to withdrawals from debt schemes due to advance tax payments and quarterly liquidity management and was partially offset by continued inflows in equity funds coupled with rise in underlying asset prices as investors continue to repose faith in the industry.
Equity fund inflows stood at Rs 28,054 crore, down 6.2% from Rs 29,911 crore in November. Despite this marginal dip, equity schemes continue to see steady investor participation, with inflows remaining in positive territory for nearly five years, he added.
The overall mutual fund industry reported net outflows of Rs 66,571 crore in the month, largely dragged by sharp withdrawals from debt schemes. Debt mutual funds saw net outflows of Rs 1.32 trillion in December. As of December, AUM of open-ended equity-oriented schemes stood at Rs 35.73 trillion, while open-ended debt-oriented schemes managed assets worth Rs 18.10 trillion.
Among other categories, hybrid schemes attracted inflows of Rs 10,756 crore, while 'other schemes', including ETFs, saw net inflows of Rs 26,723 crore. Solution-oriented schemes recorded modest inflows of Rs 345 crore during the month.
In December, debt mutual fund outflows were Rs 1.32 trillion, of which outflows from liquid, ultra short duration, low duration and money market categories were nearly Rs 1.15 trillion or around 87% of the outflows, while the overnight and floater categories received marginal inflows.
According to Ankur Punj, a managing director with Equirus Wealth, this AUM moderation is largely driven by global headwinds and rising geopolitical tensions, prompting investors to take a more cautious stance.
Flexi-cap funds continued to attract strong inflows of nearly Rs 10,000 crore, followed by mid-cap funds at Rs 4,175 crore and large & mid-cap funds at Rs 4,093 crore. In contrast, small-cap fund inflows declined to Rs 3,834 crore from Rs 4,400 crore in November, reflecting heightened volatility in the small-cap segment.
According to Akhil Chaturvedi, executive director at Motilal Oswal AMC, equity gross sales increased by 7% on-month to Rs 72,808 crore, while hybrid gross sales grew 17% to Rs 16,548 crore, indicating sustained participation in market-linked products.
Despite elevated redemptions, equity funds posted healthy net inflows of Rs 29,500 crore, reflecting profit-taking rather than risk aversion, with hybrid funds also remaining net positive. Gold & silver oriented funds also have witnessed over Rs 10,000 crore of inflows, he said.
According to Ovas Bakshi, head of retail sales at Kotak Mahindra AMC, investors continue to get the benefits from SIPs in wealth creation. Month after month, they return to build more investment-oriented portfolios and this upward momentum will persist as more and more investors are expected to join mutual funds.
Overall, the flow trend suggests that equity participation remains structurally intact, but investors are becoming more discerning, with greater emphasis on portfolio balance, diversification, and risk management rather than broad-based risk-taking, said Himanshu Srivastava, principal manager research at Morningstar Investment Research India.