SIP flows at ₹25,926 Crore in Mar-25; SIP stoppage spikes to 128.3%

16 Apr 2025 , 11:34 AM

SIP FLOWS: EDGING PROGRESSIVELY LOWER SINCE DEC-24

After touching peak SIP inflows of ₹26,459 Crore in December 2024, gross SIP flows have progressively edged lower to ₹25,926 in April 2025. However, the fall each month has only been marginal. It is still very robust in absolute terms. For the full fiscal FY25; SIP flows averaged ₹24,113 Crore a month. That means; the gross SIP inflows at ₹25,926 Crore in March 2025 was still a good 7.5% above the monthly average of FY25. On the positive side, gross SIP flows have now held above ₹25,000 Crore for 6 months in a row. Total MF SIP folios stand at 23.45 Crore as of Mar-25; of which SIP folios are 10.05 Crore (42.9%). In calendar 2025, there has been contraction in outstanding SIP folios each month.

SIPS TAPER, YET ANNUAL GROWTH STAYS ROBUST

The progressive fall in monthly SIP flows between Dec-25 and Mar-25 is quite normal in volatile times. Gross SIP flows in FY25 were a full 45.2% above FY24.

Monthly MF Data	Monthly SIP Inflows (₹ Crore)
Mar-24	19,271
Apr-24	20,371
May-24	20,904
Jun-24	21,262
Jul-24	23,332
Aug-24	23,547
Sep-24	24,509
Oct-24	25,323
Nov-24	25,320
Dec-24	26,459
Jan-25	26,400
Feb-25	25,999
Mar-25	25,926

Data Source: AMFI

Gross SIP flows into mutual funds averaged ₹24,113 Crore in FY25. It is quite surprising that, despite the spike in the SIP stoppage ratio, SIP flows continued to be robust in FY25. This can be attributed to a systematic financial planning approach adopted to mutual funds.

FY25: MILESTONES ON HOLD SINCE DEC-24

The table below captures month-wise SIP flows into mutual funds since April 2016. Each milestone of an additional ₹1,000 Crore has been highlighted in bold.

Month	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17
March	25,926	19,271	14,276	12,328	9,182	8,641	8,055	7,119	4,335
February	25,999	19,187	13,686	11,438	7,528	8,513	8,095	6,425	4,050
January	26,400	18,838	13,856	11,517	8,023	8,532	8,064	6,644	4,095
December	26,459	17,610	13,573	11,305	8,418	8,518	8,022	6,222	3,973
November	25,320	17,073	13,306	11,005	7,302	8,273	7,985	5,893	3,884
October	25,323	16,928	13,041	10,519	7,800	8,246	7,985	5,621	3,434
September	24,509	16,042	12,976	10,351	7,788	8,263	7,727	5,516	3,698
August	23,547	15,814	12,693	9,923	7,792	8,231	7,658	5,206	3,497
July	23,332	15,245	12,140	9,609	7,831	8,324	7,554	4,947	3,334
Jun	21,262	14,734	12,276	9,156	7,917	8,122	7,554	4,744	3,310
May	20,904	14,749	12,286	8,819	8,123	8,183	7,304	4,584	3,189
April	20,371	13,728	11,863	8,596	8,376	8,238	6,690	4,269	3,122

Data Source: AMFI

Here are two takeaways from the 8-year SIP flow data.

24. Fiscal year FY25, till date, is already the best year in terms of milestones, with 6 milestone months achieved; better than the 5 milestone months in FY24. However, milestones have been on hold since Dec-24.
25. With average SIP flows at ₹24,113 Crore in FY25, a logical target would be to average over ₹30,000 Crore of gross SIP flows a month in FY26. A lot will depend on how Trump Tariffs, and the Indian response pan out.

Let us now get into the SIP story in greater detail.

READING BETWEEN THE LINES OF THE SIP TICKET STORY?

Since FY22, SIP flows have been progressively improving each year; with FY25 being the best year by a margin.

Financial Year	Gross Annual SIP flows (₹ Crore)	Average Monthly SIP Ticket (AMST)	YOY Accretion in (%)
FY16-17	₹43,921 Crore	₹3,660 Crore
FY17-18	₹67,190 Crore	₹5,600 Crore	53.01%
FY18-19	₹92,693 Crore	₹7,725 Crore	37.95%
FY19-20	₹100,084 Crore	₹8,340 Crore	7.96%
FY20-21	₹96,080 Crore	₹8,007 Crore	-3.99%
FY21-22	₹124,566 Crore	₹10,381 Crore	29.65%
FY22-23	₹155,972 Crore	₹12,998 Crore	25.21%
FY23-24	₹199,219 Crore	₹16,602 Crore	27.73%
FY24-25	₹289,352 Crore	₹24,113 Crore	45.24%

Data Source: AMFI

If you look at the yoy growth in average SIP ticket size, the FY25 growth is substantially than the average of the previous 3 fiscal year, despite a much higher base. That sure shows a lot of mutual fund momentum still gravitating towards SIPs.

RETAIL INTENSITY OF SIP FOLIOS IN MARCH 2025

SIP folios actually contracted for the third month in a row due to the SIP Stoppage Ratio touching 128.3%. Gross SIP accretions in March 2025 were subdued at 40.19 Lakhs (the lowest level in FY25). This is sharply lower compared to 56.19 Lakhs in January, 54.27 Lakhs in December, and 49.47 lakhs in November 2024. However, due to the SIP stoppage ratio at 128.3%, the outstanding SIP folios decreased from 1,016.75 Lakhs in February 2025 to 1,005.39 Lakh folios in March 2025. The net reduction is (11.36) Lakh SIP folios or -1.12%.

What about SIP AUM yoy? Between February 2025 and March 2025, the SIP AUM bounced from ₹12,37,784 Crore to ₹13,35,188 Crore; a bounce of 7.87% on sequential basis. While the bounce in the Nifty and Sensex helped the SIP AUM bounce back, the real problem is with contracting SIP folios. As of the close of March 2025, the SIP folios accounted for 42.87% of total MF folios while the SIP AUM accounted for 20.31% of the overall MF AUM.

SIP STOPPAGE RATIO – ABOVE 100% FOR THIRD MONTH IN SUCCESSION

AMFI reports monthly SIP flows on a gross basis. That gap between gross and net SIP flows is explained by SIP stoppage ratio; the ratio of SIP accounts discontinued to new SIP accounts opened. Between January and February 2025, SIP Stoppage ratio widened from 109.15% to 122.76%; and further to 128.27% in March 2025.

Apr-24	May-24	Jun-24	Jul-24	Aug-24	Sep-24	Oct-24
52.24%	88.38%	58.68%	51.40%	57.14%	60.72%	60.91%
Nov-24	Dec-24	Jan-24	Feb-24	Mar-24	FY25
79.12%	82.73%	109.15%	122.76%	128.27%	75.63%

Data Source: AMFI

Since July, the SIP stoppage ratio is consistently rising; due to the sense of uncertainty at higher levels of the market and in the light of the sell-off by FPIs. However, in the March 2025 quarter, the SIP stoppage ratio has been above 100% in each of the 3 months.

FY25 ANNUALIZED SIP STOPPAGE RATIO WELL ABOVE PANDEMIC PEAK

Here is the SIP stoppage ratio in last 6 completed  fiscal years, including FY25.

FY 2019-20	FY 2020-21	FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25
57.84%	60.88%	41.74%	56.94%	52.41%	75.63%

Data Source: AMFI

The SIP stoppage ratio for FY24 at 52.41% was lower than FY23. However, FY25 has seen a spike in the SIP stoppage ratio to 75.63%; with SIP stoppage ratio above 100% in each of the last 3 months of FY25. The SIP Stoppage Ratio for FY25 is substantially above the pandemic peaks, showing that investors are worried about high index levels, high Buffett Ratio, and global uncertainty triggered by Trump’s reciprocal tariffs. A SIP stoppage ratio of 40% to 45% is acceptable, but impractical in such uncertain times. The big challenge is to, at least, bring down the SIP stoppage ratio to more reasonable levels to reduce SIP attrition.