SIP inflows cushion FPI selling as nearly 10 crore accounts invest ₹32,160 crore in Oct: AMFI data

India’s systematic investment plan (SIP) contributions remained resilient in October 2026, with nearly 10 crore accounts investing ₹32,160 crore, registering an 8.9% increase year-on-year (YoY), according to the latest data released by the Association of Mutual Funds in India (AMFI). This was the third consecutive month that monthly SIP contributions exceeded ₹32,000 crore, indicating the sustained participation of retail investors despite volatility in equity markets.

The number of contributing SIP accounts stood at 9.99 crore in October, compared with around 9.45 crore in the corresponding month last year, as per the AMFI data. SIP assets under management (AUM) rose 8.8% YoY to ₹17.68 lakh crore, accounting for 21.2% of the mutual fund industry's total AUM of ₹83.39 lakh crore in October.

“Investor participation remained resilient, with nearly 10 crore SIP accounts contributing ₹32,160 crore in October, an 8.9% increase year-on-year. This marked the third consecutive month of SIP contributions exceeding ₹32,000 crore,” said Venkat Chalasani, Chief Executive, AMFI.

SIP inflows help cushion sustained FPI selling

The resilience in SIP contributions comes against the backdrop of volatile equity markets and continued selling by foreign portfolio investors (FPIs). Steady domestic investor participation has helped provide a cushion to the market even as foreign investors have continued to withdraw money from Indian equities.

India's mutual fund industry witnessed a sharp recovery in overall net inflows in October, attracting ₹1.74 lakh crore compared with net outflows of ₹1.33 lakh crore in September.

The turnaround was largely driven by debt mutual funds, which recorded net inflows of ₹1.13 lakh crore, reversing outflows of ₹1.83 lakh crore in the previous month. Liquid and overnight funds accounted for a significant part of the recovery, reflecting the usual movement of institutional money at the beginning of a quarter following quarter-end withdrawals.

Sumit Singhania, Head of Research at Bajaj Broking, said October's equity fund inflows of around ₹32,994 crore remained healthy despite declining nearly 14% from September. These inflows broadly matched the ₹34,843 crore withdrawn by foreign investors from Indian equities during the month.

Domestic investors, backed by SIP contributions of ₹32,160 crore, are absorbing foreign selling for now, he said. The key indicators to watch will be whether liquid-fund inflows sustain beyond the quarter-end cycle and whether equity inflows remain above ₹30,000 crore amid continued FPI selling.

Equity fund inflows moderate 14% to ₹32,994 crore

Equity mutual funds recorded their 68th consecutive month of positive net inflows since March 2021. However, inflows moderated nearly 14% month-on-month to ₹32,994 crore in October from ₹38,307 crore in September, indicating some moderation in fresh allocations even as investors continued to stay invested.

Navneet Munot, MD and CEO of HDFC AMC, said net inflows into equity-oriented funds and SIPs remained resilient in October despite market volatility. Gross redemptions from equity-oriented funds were also the lowest in recent months.

“Indian investors have matured over the years and increasingly treat volatility as part of the investment journey. The recent rally has shown once again that time in the market matters far more than timing the market,” Munot said.

According to Nirav Karkera, Head of Research and Fund Manager at W by Groww, SIPs are contributing a meaningful share of fresh inflows, while lump-sum investments have not picked up at the same pace. This suggests that domestic money is cushioning market declines but may not, on its own, be sufficient to drive markets meaningfully higher.

He also pointed to a shift in investor preference towards diversified funds, with investors increasingly leaving large-, mid- and small-cap allocation decisions to fund managers. Interest in small-cap funds appears to be moderating, while larger companies look better placed to lead in the near term.

“Any slippage in SIP numbers going forward could be a valid cause for concern, though the probability seems low at the moment,” Karkera said. He also cautioned against aggressive buying in silver amid falling prices, describing the trend as more of a trade than a long-term investment.

Meanwhile, the mutual fund industry's net AUM increased to ₹83.39 lakh crore in October from ₹82.64 lakh crore in September. Average assets under management (AAUM) stood at ₹85.17 lakh crore.

The industry added 15.80 lakh net folios during the month, taking the total folio count to 28.78 crore, up from 28.62 crore in September. However, retail AUM across equity, hybrid and solution-oriented schemes declined to ₹49.21 lakh crore in October from ₹49.70 lakh crore in the previous month.

Retail folios across these categories increased to 21.93 crore from 21.82 crore, indicating continued participation from individual investors even as retail assets moderated.

Separately, 28 mutual fund schemes were launched in October, mobilising a total of ₹3,829 crore.

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