The total SIP contributions for March 2026 stood at Rs 32,087 crore, a 7.5% rise as compared to Rs 29,845 crore in February.

The Association of Mutual Funds in India (AMFI) reported that net inflows into equity schemes in the country dipped 5% month-on-month in April to Rs 38,440 crore. The moderation comes after a robust March, when equity flows rose to Rs 40,450 crore, the highest since July 2025, amid increased volatility in the markets due to high crude oil prices, depreciation of the rupee, and continued selling by FIIs.

Importantly, the drop in lump-sum equity flows did not take the shine off SIP flows. The inflows in SIPs were Rs 31,115 crore in April, which were broadly unchanged, and further reflected the strengthening of the retail investor base in India against short-term market volatility.

The total SIP contributions for March 2026 stood at Rs 32,087 crore as compared to Rs 29,845 crore in February which is a 7.5% rise. As of March 31, 2026, there are 9.72 crore SIP  active accounts. The collection in April is down slightly on the previous month but still far higher than where SIP collections stood six months ago.

The continuity of SIP flows during a turbulent time is noteworthy. Equity mutual funds saw net positive inflows for the 61st month in a row since March 2021, even during the two significant FPI selling months, October 2024 and March 2026. April marks the start of a record 62 months of positive net equity inflows, reflecting the structural change in the way retail investors are reacting to market downturns.

Despite the elevated volatility in the equity markets, India’s mutual fund industry ended FY26 with AUM growing by 12.2% to Rs 73.73 lakh crore, with the industry adding nearly Rs 8 lakh crore into assets under management in the year. The industry showed resilience with continued retail engagement and healthy inflows into actively managed equity funds.

Flexi Cap was the top performer in terms of net inflows in March, topping all equity categories with Rs 10,054 crore. Despite the steep losses in benchmark indices during the month, Mid Cap and Small Cap funds have both seen net inflows of Rs 6,000 crore. The April data should be a similar picture of widespread participation across categories, with the large caps and flexi caps likely being the most popular as the prevailing expert advice is to favour quality and lower volatility plays.

Passive fund inflows had surged significantly in March, as non-gold ETFs had seen a rise of 4.4 times month-on-month with Rs 19,802 crore inflows. The net inflows in March were Rs 30,768 crore, which is over double the Rs 13,879 crore in February. In recent volatile months, the shift to passive instruments has been a steady trend during equity corrections as investors look for lower-cost, index-tracking options instead of choosing among active fund managers.

The 5% decrease in total equity flows is due to the prudence of the retail and institutional investors with discretionary, lump-sum investments. The crude oil price averaged more than $114 per barrel in April, much higher than the $70 average it had last year, raising inflation concerns, further eroding India’s current account deficit and squeezing profits in oil-sensitive industries. The rupee hit a fresh low of 95.33 against the dollar in the month, further complicating investor’s lives.

UBS has lowered its India GDP growth forecast for FY27 to 6.2% from 6.7%, while Standard Chartered has lowered its forecast to 6.4% from 7.1% and blamed the shock for the oil price. In this scenario, many investors are opting for the SIP route, which is a behavioural change that has made the industry structurally stronger, by investing in a gradual manner instead of making big investments at once.

The AUM of the Indian mutual fund industry has increased from Rs 12.33 lakh crore on March 31, 2016 to Rs 73.73 lakh crore on March 31, 2026, which is about six times in 10 years. AUM has increased by almost three times in the past five years, from Rs 31.43 lakh crore in March 2021.

The total number of mutual fund folios as on 31 March 2026 was 27.39 crore and the number of folios under growth-oriented equity, hybrid and solution-oriented schemes was around 20.83 crore, indicating the continued involvement of retail investors in growth-oriented schemes.

The 2025 AMFI Annual Report had indicated that investors have been holding on to their investments despite the volatility, showing a long-term commitment towards their financial goals. The same can be said of April 2026, a month in which markets proved their resolve but retail did not.

The steady SIP number is the most important datapoint from April’s release. It implies that even as the markets go haywire in the world and at home, the Indian retail investors are not pulling their systematic commitments to the same extent. That maybe the very reason why this generation of Indian mutual fund investors is different from the previous one, where every market stress would result in massive redemption activity.