Business · Markets · 1 hr ago
SIP growth slows as market volatility draws focus to lump-sum investing
In India, monthly mutual fund SIP contributions reached a record ₹32,490 crore in September, but their annual growth slowed to 10.7% from 52.8% a year earlier.
A systematic investment plan, or SIP, lets investors put a set amount into a mutual fund regularly, while a lump-sum investment is made all at once.
Mutual fund folios grew much faster than active SIP accounts, suggesting the industry is expanding through other products and ways of investing too.
Market volatility may lead some investors with savings to consider lump-sum investments, but the available data do not show how much was invested this way.
The Nifty 50 fell 9.43% from the start of the US-Iran war on 28 February to 9 October, and experts said weaker market returns may be discouraging some new or smaller investors.
Investing a large amount at once risks greater exposure to short-term price swings, while waiting for prices to fall further could mean missing a recovery.
Monthly SIP contributions reached a record ₹32,490 crore in September, but their year-on-year growth slowed to 10.7%.
The share of active SIP folios among mutual fund folios fell to 35.2%, as total mutual fund folios and assets continued to grow.
Market volatility and subdued equity returns may be encouraging some investors to consider lump-sum investments, though data on lump-sum flows are unavailable.
Experts say SIP growth is also slowing because the contribution base is larger and some new or smaller investors are stepping back.
Lump-sum investing carries risks, including exposure to short-term price swings and the possibility of missing a market recovery while waiting for an entry point.
- Who
- Mutual fund investors and industry officials commenting on SIP growth.
- What
- SIP contributions hit a record, but their year-on-year growth slowed as lump-sum investing drew focus.
- When
- September; the article was published on 14 October 2026.
- Where
- India.
- Why
- The article cites subdued market returns, a larger base for SIP contributions, and possible investor interest in lump-sum investments during volatility.
This story does not have two clearly opposing sides.
The US-Iran war began, after which the Nifty 50 fell 9.43% through 9 October.
The Nifty 50 touched 22520.45.
Monthly SIP contributions were ₹24,509 crore, and SIP growth was 52.8% year on year.
Monthly SIP contributions reached ₹32,490 crore, with year-on-year growth of 10.7%.
- Monthly SIP contributions
- ₹32,490 crore in September
- SIP growth
- 10.7% year on year, down from 52.8% in September 2024
- Active SIP folios
- 10.06 crore in September; up 2% over two years
- Mutual fund folios
- 28.62 crore in September
- Mutual fund assets
- ₹82.64 trillion in September
- Nifty 50
- Fell 9.43% from 28 February to 9 October
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What people are saying
The data is more indicative of total mutual-fund folios growing faster than SIP accounts
The slowdown can largely be attributed to one key factor: the sharp moderation in market returns
A 40-50% annual growth rate becomes progressively difficult to sustain as the base expands. This is the classic base effect.