SIP accounts hit record high of 8.56 crore in May; mutual fund AUM crosses Rs 72 Lakh crore: AMFI

SIP contributions hit a record high of Rs 26,688 crore in May, slightly surpassing April’s Rs 26,632 crore, reinforcing the growing investor preference for systematic investing in mutual funds. The trend highlights continued optimism and a disciplined approach to wealth creation.

The number of SIP accounts also climbed to 8.56 crore in May, up from 8.38 crore in April, with 59.15 lakh new accounts registered, as per AMFI’s monthly data.

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The stability of SIP assets as a percentage of the overall industry, ranging between 19.2% and 20.5% over the past six months, highlights its consistent contribution to the industry's growth.

Equity AUM rose 4.83% to Rs 32.05 lakh crore in May 2025 from Rs 30.58 lakh crore in April, driven by MTM gains from a sustained rally in equity markets for the third consecutive month, continued participation from retail and domestic investors, and broad-based market strength.

Flexi-cap funds attracted the highest inflows within the equity category for the third consecutive month, garnering Rs 3,841 crore in May.

AUM of open-ended debt funds dipped 0.16% in May to Rs 17.54 lakh crore from Rs 17.57 lakh crore in April 2025. The monthly net outflow in debt funds of Rs 15,908 crore reversed April’s net inflow of Rs 2.19 lakh crore.

Debt mutual funds witnessed MTM gains in May amid surplus liquidity, relatively tame inflation and easier central bank policies that kept government bond yields low, contrary to global trends. Despite some profit-booking at the beginning of May, RBI’s announcement of its debt purchase plan for the month spurred optimism.

In May, hybrid fund assets grew 4.43%, reaching Rs 9.55 lakh crore from Rs 9.15 lakh crore in April. The growth was driven by MTM gains and the highest ever inflows amounting to Rs 20,765.05 crore.

Assets under passive funds grew 2.7% on-month, touching a record high of Rs 12.24 lakh crore in May. The upward trend is largely attributed to the sustained investor interest in ETFs, which witnessed inflow of Rs 5,525.98 crore during the month. This marks the 55th consecutive month of net inflows into ETFs.

During the first four months of 2025, US debt and equity funds saw net outflows, with investors withdrawing funds amid growing recession fears and ongoing discussions around tariffs. In contrast, the Indian market witnessed a surge in inflows in both equity and debt categories, driven by renewed optimism around India's macroeconomic fundamentals. Furthermore, strong corporate earnings results boosted retail participation in the market, with individual investors taking a more positive view of the Indian economy.

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The mutual fund industry crossed the Rs 70 lakh crore AUM milestone for the first time ever in May 2025, with total assets rising to Rs 72.20 lakh crore, a 3.04% increase from Rs 69.99 lakh crore in April 2025.

During the month, the Nifty 50 TRI gained 1.92%, while the BSE 500 TRI rose 1.75%, contributing to the overall market gains.

Mutual funds added 20.18 lakh new folios in May 2025, taking the total folio count to 23.83 crore. The equity and passive fund categories accounted for the majority (84.55%) of total additions.

Equity mutual funds continued to dominate with 16.61 crore folios (69.69% of total folios). The others category, which includes passive funds, stood at 4.25 crore folios, making up about 17.82% of total folios.