Monthly Systematic Investment Plan (SIP) inflows may touch Rs. 40,000 crore (US$ 4.65 billion) in 18-24 months: Union Asset Management Company CEO

Driven by rising disposable incomes and greater awareness of disciplined investing, monthly Systematic Investment Plan (SIP) inflows in India’s mutual fund industry are projected to touch Rs. 40,000 crore (US$ 4.65 billion) over the next 18–24 months, according to CEO of Union Asset Management Company Mr. Madhu Nair. The broader outlook remains positive despite a short-term decline in SIP inflows due to heightened global market volatility—standing at Rs. 25,925 crore (US$ 3.01 billion) in March 2025. In FY25, average monthly SIP inflows surged to Rs. 24,113 crore (US$ 2.80 billion) from Rs. 16,602 crore (US$ 1.93 billion) in FY23, reflecting a maturing retail investor base. While SIP account numbers dipped from 8.4 crore in March 2024 to 8.11 crore in March 2025, SIP Assets Under Management (AUM) rose to Rs. 13,31,000 crore (US$ 154.61 billion), up from Rs.10,71,000 crore (US$ 124.39 billion). 

Mr. Madhu Nair attributed this growth to tax reforms and robust investor-friendly market valuations. Under the revised tax regime from April 2025, individuals earning up to Rs. 12 lakh (US$ 13,937.84) are exempt from income tax—boosting disposable income and expected to fuel long-term investments like SIPs. The mutual fund industry, heavily reliant on SIPs, saw equity inflows soar to Rs. 4,17,000 crore (US$ 48.43 billion) in FY25 from Rs.1,84,000 crore (US$ 21.37 billion) in FY23. This growth, supported by strong corporate earnings and macroeconomic tailwinds, led to a 23% rise in total industry AUM to Rs. 65,74,000 crore (US$ 763.34 billion).  

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.