May 2025 marked a significant milestone in the country’s investing journey, as Systematic Investment Plans (SIPs) continued their record-breaking streak. What used to be a tool for the financially savvy urban elite has now become India’s favorite way to invest.
Post April’s incredible record high of investments, the month of May astonished all by going beyond that and saw SIP inflows hit a new all-time high. According to the Association of Mutual Funds in India (AMFI) data, ₹26,688 crore poured into mutual funds via SIPs in May 2025 which is the highest ever monthly inflow. That’s a slight jump from April’s ₹26,632 crore, but enough to etch a new record in India’s investment books. This surge in SIPs comes even as lump sum investments in equity mutual funds took a back seat in May, dropping to a 13-month low.
SIPs allow investors to put in small, regular amounts into mutual funds, making market participation accessible, structured and long-term in nature. This growth is a clear indication that while market sentiments may vary, the commitment to long-term investing through SIPs is only growing stronger.
It’s not just about the money. It’s about people’s power. A staggering 8.56 crore SIP accounts were active in May, with nearly 59 lakh new SIPs registered in a single month. That’s a fresh SIP every 1.5 seconds. This isn’t just a metro phenomenon either. The growth is spreading across Tier-2 and Tier-3 cities as awareness and accessibility skyrocket.
Interestingly, while equity mutual funds saw their lump-sum inflows dip to a 13-month low, SIPs told a different story. The assets under management (AUM) linked to SIPs saw a solid rise, hitting ₹14.61 lakh crore in May, up from ₹13.89 lakh crore in April. SIPs now account for roughly 20% of the total mutual fund industry’s AUM. This resilience is especially important as market volatility rises, proving that India’s investor base is maturing, with SIPs becoming the default wealth-building tool for the masses.
Also read: Is a Low-Duration Mutual Fund a Good Investment Choice for You?
What It All Boils Down To
With investing getting personal, more Indians are choosing SIPs as a monthly ritual, like paying rent or buying groceries. Campaigns and digital platforms are clearly working to make investing easy and accessible, so financial literacy is indeed rising. And with all this, SIPs are now the stabilising force for mutual funds and retail investors are the backbone of the market.
The rise of SIPs isn’t just about a number. It’s about a mindset shift. With digital platforms, financial influencers and mobile-first investing apps fuelling awareness and participation, this momentum looks set to continue. SIPs have quietly become the new talk of the town, especially after May 2025’s historic numbers.
Written by Teertha Ravi
