Investments through systematic investment plans (SIPs) in India rose to ₹3.5 trillion in the 2025-26 fiscal year. This marks a big increase from ₹1 trillion in 2019-20, according to data from the Association of Mutual Funds in India (AMFI). In the first four months of 2026, SIP inflows reached ₹1.26 trillion. This amount surpassed total investments for any year before 2021-22.
Shift in SIP Categories
The latest AMFI-Crisil Factbook shows a clear shift in the top SIP categories. Mid-cap funds have taken over from large-cap funds as the largest category. This change is due to a sharp rise in mid-cap fund inflows. Adil Chacko, Executive Director at Anand Rathi Wealth, noted that the Nifty Midcap 150 delivered about 17% annualized returns over five years. In comparison, the Nifty 50 returned 9.1%. Small-cap funds also increased their share from 8.3% to 12.1% during the same period. This reflects growing investor interest in higher-risk assets.
Growth of Specialized Investment Funds
Specialized investment funds (SIFs) have gained popularity since their launch in October 2025. Their assets under management (AUM) grew from ₹2,010 crore to ₹10,620 crore by March 2026. Tushar Bopche, Co-Founder and CEO of InvestValue, said that initial adoption is mainly among wealthy investors due to the ₹10 lakh minimum investment requirement. Nitin Agrawal, CEO of Mutual Funds by InCred Money, pointed out that the growth of SIFs came during a market correction. Investors sought strategies for managing downside risks.
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The rise in SIP investments is likely to keep demand for equities strong. This could drive stock prices higher. However, it may also lead to more volatility in the equity markets as more retail investors participate. Watch for upcoming regulatory changes that could affect mutual fund structures and investor strategies.
Based on reporting by: livemint.com