SIP Flows in June 2026 bounce to ₹31,781 Crore on likely peace dividends

SIP Flows in June 2026 bounce to ₹31,781 Crore on likely peace dividends

MONTHLY SIP FLOWS BOUNCE, BUT STILL BELOW PEAK

After 2 months of subdued SIP flows, the month of June 2026 saw the gross SIP flows bounce back to ₹31,781 crore. Like the traders, even the retail investors, appear to be taking a more optimistic view of the geopolitical situation in the Middle East. The positive tiding was that the SIP stoppage ratio fell further, although it still is above 90%. SIPs are also in competition with direct equities; and with other asset classes like gold ETFs, silver ETFs, Multi-Asset Allocation Funds, and global ETFs. All these categories have managed to outperform domestic equities, which has led to flattening of SIP flows. Here is a quick 13-month view.

Data Source: AMFI

The SIP AUM at ₹17.70 Trillion as of June-end saw a bounce of +3.41% over May and an overall gain of 17.18% from the 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 JUNE 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. With the SIP Stoppage Ratio falling to 91.2% in June, the total SIP folios expanded from 1,046.72 Lakh folios in May 2026 to 1,051.59 Lakh folios in June 2026. That is MOM folio expansion of +0.47%.

Let us also talk about how SIP AUM moved. Between May 2026 and June 2026, SIP AUM bounced from ₹17,12,126 Crore to ₹17,70,482 Crore. The higher SIP AUM can be attributed to the sharp bounce in the broad-based market indices and strong flows. As we mentioned earlier, the retail investors in mutual funds are also taking an optimistic view of market trajectory.

SIP STOPPAGE – FALLS SHARPLY, BUT STILL ABOVE 90%

One of the critical ratios in understanding stickiness of SIP clients is the SIP Stoppage Ratio (Ratio of Discontinued SIPs to New SIPs). Here is a quick snapshot.

Data Source: AMFI

Between FY25 and FY26, the SIP stoppage ratio had gone up sharply from 75.63% to 94.51%. This picture is not entirely realistic, since the surge in SIP stoppage ratio in calendar 2025 was due to the SIP clean-up taken up by SEBI. In the 3 months of FY27, the SIP stoppage ratio has averaged 95.79%, although the trend in the last 3 months has been consistently lower.

What does a high SIP stoppage ratio indicate? It means; more SIPs are stopped than started during the month; and that is not good news. There is clearly a gap in the way investors appear to be treating their SIPs. In the past, the average SIP stoppage ratio used to be around 40% to 42% in normal times. Now even in normal times; it is substantially higher.

PRODUCTIVE SIP RATIO BOUNCES IN JUNE 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 3 months.

Data Source: AMFI

The Productive SIP ratio depicts the ratio of SIP folios that are actually giving business on a consistent basis out of the total outstanding SIP folios. These are the truly meaningful SIP folios. This ratio had fallen from over 96% to 93%; but even this is a very meaningful growth from the levels of 70-75% that we used to see prior to the folio clean-up last year.

The gist of the story from SIP data for June 2026 is that the SIP flows continue to be robust at a gross level. Today, the reality is that SIPs have to compete with direct equities, global funds, MAAFs, gold ETFs, and silver ETFs. Each has been an outperformer in its own way in the last few years, so the SIP flows are against tough odds. The good news is that retail investors are now taking a more optimistic view of the Indian equity markets!