The growth in Systematic Investment Plan (SIP) accounts continued to slow in FY26 despite monthly contributions touching fresh highs, as per news reports. Data released by the mutual fund industry showed SIP inflows reached a record ₹32,087 crore in February 2026.
However, the number of new contributing SIP accounts added during the financial year remained lower than the previous 2 years. Around 16.07 million SIP accounts were added in FY26 till February, compared with 16.57 million in FY25 and 20.37 million in FY24.
The moderation was largely seen in direct investment channels. SIP additions through direct plans fell sharply over the last three financial years. Direct SIP additions stood at 10.6 million in FY24 before declining to 7.1 million in FY25.
In FY26, direct SIP additions dropped further to nearly 0.927 million till February. Industry data also showed that about 4.28 million direct SIP accounts were either closed, matured, or paused in April 2025, affecting the overall growth numbers for the year.
The slowdown came during a period of increased market fluctuations and lower short-term equity returns. Direct investment platforms, including fintech channels, had seen strong participation during the earlier market rally, but investor activity weakened during FY26.
Mutual fund distributors also faced higher acquisition costs while bringing in new investors. This made fresh SIP registrations slower compared with the growth seen over the previous 2 financial years.
The industry has also discussed the need for a common KYC process between banking and capital market platforms to simplify investor onboarding and improve participation levels.
While new account additions slowed, the average assets linked to each SIP account increased. Assets per SIP account rose from ₹1.15 lakh in FY21 to ₹1.59 lakh by February 2026.
The trend indicates that existing investors continued with their SIP contributions despite market volatility. Growth in assets per account remained steady even as the pace of opening new SIP accounts moderated.
SIP contributions remained strong during FY26, but the growth in new accounts slowed for the second year in a row. Lower additions through direct channels and cautious retail participation weighed on overall account growth during the period.
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Published on: May 11, 2026, 2:19 PM IST
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