The increase came alongside a recovery in equity mutual fund inflows, which rose 26.5% month-on-month to nearly ₹29,000 crore during June.
Why did SIP inflows rise?
Market participants attributed the increase to continued retail participation despite volatile market conditions.
Deepak Jain, President and Head–Sales at Edelweiss Mutual Fund, said the recovery in June coincided with improved performance in the broader market, particularly small-cap stocks. He noted that while equity inflows have not yet returned to April levels, the June data points to a recovery in investor participation.
On SIPs, Jain said monthly contributions have continued to grow despite range-bound markets. He pointed out that monthly SIP inflows have increased from about ₹19,200 crore in March 2024 to nearly ₹32,000 crore now, even though benchmark indices have delivered relatively modest returns over the period.
According to him, this reflects investors’ willingness to continue investing through market cycles.
Addressing concerns around SIP stoppages, Jain said a higher stoppage ratio in a flat market is not unusual, particularly among investors with smaller-ticket SIPs or those new to equity investing. He added that long-term SIP trends and sustained monthly contributions are more meaningful indicators of investor behaviour than short-term fluctuations in stoppages.
Retail participation remains strong
Nehal Meshram, Senior Analyst at Morningstar Investment Research India, said the rebound in equity fund inflows suggests retail investor participation remained resilient despite global uncertainties and intermittent market volatility.
She noted that equity-oriented mutual funds attracted ₹1.81 lakh crore in cumulative net inflows during the first half of calendar year 2026, up about 12% from ₹1.61 lakh crore in the corresponding period last year.
According to Morningstar, mid-cap and small-cap funds continued to lead inflows during June, while flexi-cap and large & mid-cap funds also attracted healthy investments, reflecting investor interest across a range of equity categories.
