In India, the inflow of Systematic Investment Plans (SIPs) has grown eight times in the last eight years, from Rs 3,497 crore in August 2016 to Rs 28,265 crore in August 2025, according to a Whiteoak Capital analysis. According to the research, this steady rise demonstrates people’s growing faith in SIP and disciplined investing.
The paper states that SIP has produced a minimum return of -24.6 percent and a maximum return of 55.6 percent between August 1996 and August 2025. Meanwhile, the typical return over this time frame has been between 14 and 16 percent. The paper states that your chances of receiving favorable returns from SIP investments increase with the length of your investment period. Additionally, it stated that sustained investment over an extended period of time yields better returns than market timing.
“You can receive good returns if you start SIP even at a high level in the market and stay invested for a long time,” it continued.
For instance, at an XIRR (extended internal rate of return) of roughly 13 percent, an investor’s investment of Rs 21.2 lakh would have grown to Rs 75.23 lakh by August 2025 if he had begun a monthly SIP of Rs 10,000 in January 2008, just before the global financial crisis.
According to the study, the investor makes their investment on a specific date each month. In the long run, this has little effect on returns. According to the analysis, mid-caps have outperformed the large-cap and small-cap categories in SIPs over the long run, with average returns of 17.4% compared to 13.7% for large-caps and 14.7% for small-caps.
August’s Equity Inflows Were Moderate
According to the most recent data released on September 10 by the Association of Mutual Funds in India (AMFI), the mutual fund industry saw a slowdown in equity inflows in August, with net investments falling 21% month-over-month to Rs 33,430 crore, down from Rs 42,702 crore in July and Rs 23,587 crore in June.
August was the 54th consecutive month with positive equity flows, notwithstanding the slowdown, indicating ongoing investor involvement. Although it was still higher than Rs 74.41 lakh crore in June, the industry’s total assets under management (AUM) decreased marginally to Rs 75.18 lakh crore from Rs 75.35 lakh crore in July, helped in part by mark-to-market gains.
With 23 open-ended plans across categories raising Rs 2,859 crore this month, the pace of new fund launches slowed. In July, 30 schemes raised Rs 30,416 crore.
