Systematic Investment Plans (SIPs) saw a record inflow of Rs 29,361 crore in September 2025, according to data released by the Association of Mutual Funds in India (AMFI). This milestone highlights sustained trust among retail investors in mutual funds as a preferred long-term wealth creation avenue.
Robust SIP Growth Amid Market Recovery:
September witnessed contributions from over 92.5 million SIP accounts, underlining widespread participation across demographics. Despite a 9% month-on-month decline in equity scheme inflows to Rs 30,422 crore, benchmark equity indices rebounded, signaling renewed market optimism. The moderation in equity inflows is viewed as cyclical following exceptionally strong inflows in July and August.
Equity Mutual Funds Show Resilience:
Equity funds recorded positive inflows for the 55th consecutive month, indicating persistent investor confidence in equities despite market volatility. Venkat N Chalasani, CEO of AMFI, emphasized that total mutual fund assets rose to Rs 75.61 lakh crore, fueled by over 3 million new folios added in September, expanding the reach of mutual fund investments across India.
Surge in Safe-Haven Assets:
Passive funds experienced a 65.4% increase in inflows, attracting Rs 18,094.6 crore, propelled by gold and silver ETFs. Both categories recorded all-time high inflows at Rs 8,363 crore and Rs 5,342 crore respectively—rising 282% and 203%. Geopolitical uncertainties, global market volatility, and a strong U.S. dollar encouraged investors to seek refuge in precious metals.
Expert Insights:
Nehal Meshram, Senior Analyst at Morningstar India, highlighted the tactical shift towards gold as a reliable store of value amid central bank policy reviews and global risks. Kartik Jain, MD & CEO of Shriram AMC, linked the demand for safe-haven assets to anticipated rate cuts, inflationary pressures, and slowing global growth, further supported by central banks’ fresh investments in bullion.
Overall Industry Growth:
The mutual fund industry’s net assets under management rose from Rs 75.19 lakh crore in August to Rs 75.61 lakh crore in September. SIP assets under management (AUM) reached Rs 15.52 lakh crore. Additionally, nine new fund offers mobilized Rs 1,959 crore during the month, highlighting the sector’s vitality.
Behavioral Perspective:
Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital, cautioned that retail investors often exhibit recency bias, which can yield short-term gains but potentially harm long-term portfolio performance.
Conclusion:
The record Rs 29,361 crore SIP inflow in September 2025 underscores strong retail participation and confidence in mutual funds as an investment vehicle. The shift towards safe-haven assets like gold ETFs amid geopolitical and economic uncertainties also reflects prudent investor behavior. This robust growth positions the mutual fund industry for further expansion as India’s financial market deepens.
