SIP Inflows Hit Record, Equity AUM Declines

Systematic investment plan (SIP) inflows reached a record ₹32,100 crore in March 2026, rising 8% month-on-month, underscoring retail investors’ resilience despite market volatility. Net equity inflows, however, have been tapering, with FY26 registering a decline compared to FY25. Asset management companies (AMCs) are facing pressure as average assets under management (AUM) in equity schemes fell for the first time in several quarters, reflecting the impact of geopolitical concerns and market corrections. Key Trends SIP inflows: ₹32,100 crore in March, up 8% MoM; net equity inflows at ₹40,500 crore, an eight-month high. Retail participation: investors used equity dips linked to the West Asia war to increase allocations. Net equity inflows: declined for four consecutive quarters after peaking in Q3FY25 (~₹100,000 crore). Equity AUM: fell 9% YoY in FY26, compared to 27% growth in FY25. Quarterly average AUM (QAAUM): declined 17% YoY to ₹3.64 trillion in FY26 from ₹4.17 trillion in FY25. AMC Impact Leading AMCs such as

, , and Nippon Life India Asset Management reported pressure on equity AUM. Lower inflows and declining AUM could weigh on earnings growth in FY27. Competition among AMCs intensifies as investors increasingly prefer SIPs for disciplined, long-term investing. Investor Behavior SIPs remain the anchor of equity inflows, cushioning volatility in lump-sum investments. Retail investors continue to buy dips, reflecting confidence in long-term equity returns despite geopolitical risks. Conclusion While SIP inflows remain robust, the decline in net equity inflows and AUM growth signals tapering momentum in the mutual fund industry. For AMCs, earnings visibility is clouded by lower inflows and heightened competition. However, retail investors’ steady commitment through SIPs provides a strong foundation for long-term equity market participation.