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Below the Views on AMFI Data July 2025 by Mr Rohit Sarin Co Founder – Client Associates - India's Largest Multi-Family Wealth Management Firm

The Indian mutual fund industry's SIP contributions reached Rs.23,332 crore in July 2025, representing approximately 62.9% of total equity inflows of Rs.37,113 crore, marking sustained growth momentum. This substantial share underscores how Systematic Investment Plans have fundamentally transformed the investment landscape, effectively replacing traditional Post Office small savings schemes as the preferred vehicle for systematic wealth creation across urban and rural India. SIP flows have demonstrated remarkable resilience, maintaining their upward trajectory independent of short-term market movements. The 61.91 lakh new SIP accounts registered in June 2025 alone reflects a structural shift in Indian household savings behavior. Unlike episodic lump-sum investments that fluctuate with market sentiment, SIP contributions have maintained their secular growth pattern, with total outstanding SIP accounts reaching 919.32 lakh by June 2025, indicating that Indian investors now view equity markets as a legitimate long-term wealth creation avenue rather than a speculative instrument.

The broadening geographical reach of SIP investments shows significant penetration in Tier-II and Tier-III cities, with AUM from tier 2 and 3 cities growing by 13% over the last 6 years. The growth is spreading across Tier-2 and Tier-3 cities as awareness and accessibility skyrocket. This transition from guaranteed returns instruments to market-linked systematic investments represents a fundamental evolution in financial planning preferences, mirroring the erstwhile penetration pattern of postal savings schemes. Enhanced investor comfort with the equity asset class stems from sustained market performance over the past five years, where the Nifty 50 has provided a 5-year CAGR return of 16.9%, with an annualized volatility of 16.6%. This stability, combined with digital infrastructure improvements and simplified KYC processes, has accelerated the financialization of Indian savings. SIP AUM reaching Rs.15,30,574 crore by June 2025, representing approximately 20.31% of the overall MF industry's AUM, indicates a permanent recalibration of risk appetite and return expectations among Indian savers.

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