SIP Flows in July 2026 at ₹31,781 Crore; as SIP stoppage tapers

SIP Flows in July 2026 at ₹31,781 Crore; as SIP stoppage tapers

MONTHLY SIP FLOWS BOUNCE, BUT STILL BELOW MARCH PEAK

After crossing the ₹32,000 crore for the first time in March 2026, the gross SIP flows have struggled to reach the mark over the last 4 months. At ₹31,961 crore, the July 2026 gross SIP flows are tantalizing close to that level and the next few months will evidence if that peak can be broken. Combined with the falling SIP stoppage ratio, the signal seems to be that retail investors are coming back to the mutual fund market. There have been 2 key triggers.

Firstly, there are the peace dividends that are visible in the SIP flows. Even if normalcy may not be back in the Middle East, the optimism is surely back among investors. Secondly, the trend in equity flows is that; such flows are clearly gravitating towards alpha hunting with small cap and mid-cap funds seeing the best folio addition traction, followed by the multi-cap and flexi-cap funds. Allocation appears to be playing second fiddle in equity funds. Here is a 13-month view.

Data Source: AMFI

The SIP AUM at ₹18.20 Trillion as of July-end saw a bounce of +2.77% over June and an overall gain of 20.42% from the recent lows of March 2026. A similar trend was also visible in the overall AUM of Indian mutual funds; with the overall AUM getting back to new highs.

FOLIO ACCRETION POINTERS IN JULY 2026

SIP data over two months can be seen either in terms of change in the SIP folios or in terms of SIP AUM. Let us look at both perspectives. While SIP folios are a better indicator of retail spread, the SIP AUM is a better indicator of value heft. With the SIP Stoppage Ratio falling to 81.9% in July, the total SIP folios expanded from 1,051.59 Lakh folios in June 2026 to 1,062.74 Lakh folios in July 2026. That is MOM folio expansion of +1.06%.

Let us also talk about how SIP AUM moved. Between June 2026 and July 2026, SIP AUM bounced from ₹17,70,482 Crore to ₹18,19,542 Crore. The higher SIP AUM can be attributed to the sharp bounce in the broad-based market indices and strong flows into the alpha hunting categories like small cap funds and mid-cap funds. Retail investors are also turning optimistic.

SIP STOPPAGE – JULY TAPERS TO 80%, FY27 STILL ABOVE 90%

One of the key ratios in understanding stickiness of SIP clients is the SIP Stoppage Ratio (Ratio of Discontinued SIPs to New SIPs). Here is a quick month-wise and year-wise snapshot.

Data Source: AMFI

Between FY25 and FY26, the SIP stoppage ratio had gone up sharply from 75.63% to 94.51%. This picture may not be entirely reflective, since the surge in SIP stoppage ratio in calendar 2025 was due to the SIP clean-up taken up by SEBI. In the 4 months of FY27, the SIP stoppage ratio has averaged 91.93%, with FY27 showing a tapering trend for SIP stoppage.

Why mutual funds and investors should worry about a high SIP stoppage ratio? It means; more SIPs are being stopped than started during the month. In the past, the average has been between 40% and 50%. One argument is that the big shift to Direct Plans has resulted in the spike in spike in SIP stoppage ratio; but we are yet to see official data confirming that.

PRODUCTIVE SIP RATIO TAD HIGHER IN JULY 2026

The Contributing SIP ratio is the ratio of SIP folios that contribute flows to the overall SIP folios. That ratio touched its lowest level in the last one year in the month of February 2026. However, the Contributing SIP Folio Ratio has recovered in the last 4 months.

Data Source: AMFI

The Productive SIP ratio depicts the ratio of SIP folios actually giving business on a consistent basis out of the total outstanding SIP folios. These are the SIP folios that truly matter and have benefited from the SIP folio cleanup taken up by SEBI in early 2025. This Productive SIP ratio used to be in the range of 70-75% prior to the folio clean-up; but has improved to above 90% consistently in last 1 year. In fact, the 1-year SIP productivity average has been 93.83%.

There is a broader context here. When equity fund SIPs started to gain ground in India, they were the only asset class that appealed to retail investors. In the last 2 years, there have been asset classes like gold, silver, MAAFs, and direct equities; where retail participation is strong. Historical evidence shows that equity fund SIPs work better for retail investors than direct equities. That now requires a much broader retail investor buy-in!