Monthly SIP Investments Can Touch Rs. 40,000 Crore in Two Years
Investments on a monthly basis through the Systematic Investment Plan (SIP) route of mutual funds are likely to increase to Rs. 40,000 crore over the next 18 to 24 months. It is likely because individuals have more money in hand to save as well as greater awareness of the advantage of regular investing.
In March 2025, SIP investments stood at Rs. 25,925 crore. Though SIP inflows declined marginally in the last four months of market fluctuations instigated by adjustments in US trade policies, overall, the scenario continues to be rosy.
The size of the SIP every month during the year 2024-25 rose to Rs. 24,113 crore from Rs. 16,602 crore in 2023-24. This reflects that more and more people are now investing regularly.
However, the SIP accounts declined modestly from 8.4 crore in March 2024 to 8.11 crore in March 2025. However, the net value invested through SIPs, or Assets Under Management (AUM), increased. It increased to Rs. 13.31 lakh crore in March 2025 from Rs. 10.71 lakh crore in the last year.
The expected rise in SIPs is due to better tax rules and better market performance. From April 1, 2025, people who earn up to Rs. 12 lakh a year do not have to pay income tax. More cash in hand, possibly meaning more savings and investment in SIPs.
SIPs are liked by small investors as they give an opportunity for periodic investment of little sums like Rs. 250 in mutual funds. This minimises the risk due to market fluctuations and makes it easier to invest.
In 2024-25, equity mutual funds received Rs. 4.17 lakh crore, an enormous amount over Rs. 1.84 lakh crore received in 2023-24. It was due to well-performing company profits, a healthy economy, and growing numbers of people going for equity funds to park their money.
SIP investing on a recurrent basis also assisted in the industry’s expansion in the mutual fund sector. Industry-wide AUM increased by 23% to Rs. 65.74 lakh crore as of March 2025 compared to Rs. 53.40 lakh crore during the corresponding period last year.
Union Mutual Fund now considers the Indian stock market to be in the “attractive zone” from the point of view of its valuation model. This is a shift from the “fair” or “slightly expensive” zone for most of 2024. The shift is due to healthy earnings by the companies and positive support from the Indian economy.
The company believes that investors would stay invested in the long term. It is optimistic that the Indian economy and stock markets will perform better in the next 10 to 15 years. The same is also exhibited through its recent leadership campaign, “Badhna Hai Toh Lagey Raho, SIP Karo“, which teaches individuals to keep investing and not worry about short-term fluctuations in the markets.
Next year (2025-26), the company also plans to grow by adding new types of investments like Specialised Investment Funds (SIFs) and Alternative Investment Funds (AIFs). It also plans to grow to GIFT City, which means that it is looking to grow beyond ordinary mutual funds.
