Mutual Fund SIP Inflows Hit New High Amid Record Equity Fund Performance in July

India’s mutual fund industry witnessed a remarkable rise in Systematic Investment Plan (SIP) contributions during July 2025, setting a new monthly record and highlighting sustained investor confidence in equity markets.

SIP Contributions Reach All-Time High

• In July, total SIP inflows surged to ₹28,464 crore, marking a 4% increase over June’s ₹27,269 crore. This performance represents the highest monthly SIP total so far this year.
• The number of new SIP registrations stood at 68.69 lakh, significantly higher than June’s 61.91 lakh.
• By month-end, the number of active SIP accounts grew to 9.11 crore, up from 8.64 crore the previous month.
• AUM under SIPs stood at ₹15.19 lakh crore (down slightly from ₹15.31 lakh crore in June), comprising roughly 20.2% of the industry’s total AUM.
• The SIP stoppage ratio—a measure of discontinued SIPs relative to new registrations—improved notably, dropping to 62.7% in July from 56.1% in June.

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Equity Mutual Funds Soar Amid Investor Optimism

• July also saw a historic surge in equity mutual fund inflows, which climbed 81% from June to a record ₹42,702.35 crore.
• This marks the highest monthly inflow ever for equity funds. A broad spectrum of fund categories contributed to the boost: small-cap funds received ₹6,484 crore (compared to ₹4,024 crore in June), mid-cap funds garnered ₹5,182 crore (a 38% rise), and large-cap funds' inflows reached ₹2,125 crore (up 25%).

New Fund Offers, Hybrid Funds, and Industry AUM Growth

• New fund offers (NFOs) played a significant role, contributing ₹30,416 crore during the month.
• Hybrid fund inflows remained strong as well: multi-asset allocation funds attracted ₹6,197 crore (versus June’s ₹3,210 crore), while dynamic asset allocation funds drew ₹2,611 crore (up from ₹1,885 crore). Arbitrage fund inflows, however, declined to ₹7,295 crore from ₹15,584 crore a month prior.
• The industry’s total assets under management (AUM) grew by approximately 1.27%, rising from ₹74.4 lakh crore in June to ₹75.35 lakh crore in July.

Broader Industry Expansion Reflects Resilient Investor Sentiment

The record inflows into SIPs and equity-oriented schemes highlight strong retail investor participation. This momentum comes against a backdrop of broader industry expansion, growing institutional support and increasing digital penetration, aiding disciplined, long-term investment behaviour.

Conclusion

July 2025 was a landmark month for India’s mutual fund industry. SIP inflows reached a new high, equity funds achieved record-breaking inflows, new fund offers and hybrid schemes drew significant investments, and overall industry AUM expanded. Together, these indicators reflect deepening investor trust and participation—even amid uncertain market conditions—signalling a maturing landscape for wealth creation.