NEW DELHI, Sep 10: Systematic Investment Plans (SIPs) continued to gain popularity among Indian investors in FY26, with net SIP inflows reaching a record Rs 2 lakh crore, despite an increase in the number of accounts being closed during the year.
According to data from the Securities and Exchange Board of India (SEBI), net SIP inflows accounted for around 56 per cent of the total Rs 3.5 lakh crore invested through SIPs in FY26. The share was higher than 54 per cent in FY25 and was the highest in at least three years.
SIP allows investors to put a fixed amount into mutual funds regularly, usually every month. For many retail investors, it has become a simple way to build long-term savings without having to invest a large amount at one time.
The term net SIP inflow refers to the money that remains invested after withdrawals are deducted from total SIP investments. In simple terms, gross SIP inflow shows how much investors put in, while net SIP inflow shows how much money stayed in the system.
The latest figures suggest that investors continued to maintain their SIP investments even though some accounts were closed. SIP-related outflows stood at about Rs 1.5 lakh crore in FY26, up 15 per cent from around Rs 1.3 lakh crore in FY25.
However, the pace of increase in withdrawals was slower than in the previous two years. Outflows had increased by 57 per cent in FY24 and 18 per cent in FY25.
The trend indicates that investors are increasingly treating SIPs as a long-term investment habit rather than a short-term market strategy. Regular investing also allows people to spread their investments across different market conditions.
SEBI has highlighted the growing participation of retail investors in India's financial markets. The regulator said the number of unique investors has risen sharply in recent years, while average monthly SIP contributions in FY26 had reached Rs 285 billion by December, compared with Rs 77 billion in FY19.
The continued flow of money through SIPs is also important for the mutual fund industry. Regular investments provide fund houses with a steady source of domestic capital and are helping expand the country's retail investment base.
For the broader economy and financial markets, the growing popularity of SIPs points to a gradual shift in household savings towards market-linked financial products. It also strengthens the role of domestic investors in supporting India's capital markets.
The record net SIP inflow in FY26 therefore reflects a growing willingness among Indian households to invest regularly, stay invested for longer periods and participate in the country's expanding financial market.
