Over 100 million retail SIP accounts actively contributing in markets despite subdued conditions: Report
Retail investors show resilience as active SIP accounts cross 100 million despite subdued market conditions, according to a new report by Centrum.
Retail investors in India are showing remarkable resilience, continuing to pump money into the markets even when conditions seem subdued. According to a recent report by Centrum, the number of active retail SIP accounts has crossed a historic milestone, reflecting a deep-rooted commitment to systematic investing among the general public.
Retail Resilience: Over 100 Million SIP Accounts Active Despite Market Dip
Despite the equity markets facing a period of weakness, the appetite for Systematic Investment Plans (SIPs) remains insatiable. The Centrum report reveals that as of September, there were 100.6 million actively contributing SIP accounts. When looking at the broader picture, the total number of SIP accounts has climbed to 108.9 million, signaling a steady expansion of the systematic investment culture in India.
Investors Staying the Course
One of the most telling signs of investor confidence is the improvement in the SIP discontinuation ratio. In July, the ratio stood at 82 per cent, but by September, it declined to 79 per cent. This shift indicates that retail investors are less likely to panic and stop their investments during market volatility, choosing instead to stay committed to their long-term financial goals.
Surge in Monthly Collections
The financial data underscores this trend of sustained participation. During the July-September quarter (Q2FY27), the average monthly SIP collections saw a significant jump:
- Year-on-Year Growth: Collections rose 12 per cent to Rs 322 billion, up from Rs 287 billion in the same quarter last year.
- Half-Yearly Trend: For the first half of FY27, average monthly collections increased by 14 per cent year-on-year, reaching Rs 318 billion.
Growth in Assets Under Management (AUM)
This consistent flow of capital has directly boosted the Assets Under Management (AUM) for SIPs. In September 2026, SIP AUM reached Rs 17.9 trillion, a substantial increase from the Rs 15.5 trillion recorded in September 2025.
The broader mutual fund industry has also mirrored this growth. The Industry Quarterly Average Assets Under Management (QAAUM) rose by 5 per cent quarter-on-quarter and 13 per cent year-on-year, hitting a massive Rs 87 trillion.
Where is the Money Going?
While the overall trend is positive, investor preferences vary across different schemes:
- Equity-Oriented Schemes: These remained the primary attraction, accounting for Rs 1.2 trillion of the total Rs 1.4 trillion net industry inflows during Q2FY27. Mid-cap and small-cap funds, in particular, continue to draw significant interest.
- Passive Investments: Exchange-traded funds (ETFs) have become a vital pillar, attracting inflows of Rs 427 billion.
- Debt Schemes: In contrast to equity, debt schemes saw a reversal, recording outflows of Rs 607 billion.
Currently, the industry's asset mix is distributed with equity-oriented schemes at 58 per cent, ETFs at approximately 18 per cent, and debt schemes at 14 per cent.
Performance of Asset Management Companies (AMCs)
Listed AMCs have demonstrated resilience throughout Q2FY27, buoyed by healthy industry flows. However, the report notes that growth has been divergent among different players. While some saw QAAUM growth as low as 4 per cent, others surged by up to 20 per cent year-on-year, all while benchmark returns fluctuated between +7 per cent and -8 per cent.
"The mutual fund industry's performance remained resilient, supported by healthy flows, while the outlook continued to be positive," Centrum stated in the report.