SIP inflows hit record high in March despite market turbulence

Record inflows through systematic investment plans last month have pushed the overall equity investments to an eight-month high in March despite markets wobbling amidst the West Asia war.

Continued investments by retail investors saw SIP inflows rise 8 per cent to ₹32,087 crore last month against ₹29,845 crore logged in February as the contributing SIP accounts increased to 9.72 crore (9.44 crore).

However, the assets under SIPs plunged 9 per cent to ₹15.11 lakh crore (₹16.64 lakh crore) due to mark-to-market loss.

Navneet Munot, MD & CEO, HDFC Asset Management Company, said, despite heightened volatility driven by geopolitical developments, domestic investors have remained steadfast and continue to invest with conviction, which augurs well for the long-term stability and depth of capital markets.

Investor resilience

The strong SIP inflows underscore the growing preference for disciplined and long-term equity investing, which reflects the increasing resilience of investors, he added.

Equity mutual fund inflows increased 56 per cent to ₹40,450 crore in March compared to ₹25,978 crore logged in February as investors took advantage of the sharp fall in market valuations to pump in more money.

Pankaj Shrestha, Head of Investment Services, PL Wealth Management, said the strong equity inflow despite March being one of the most volatile months in recent times, reflects robust investor conviction in the long-term equity story.

Rather than being deterred by short-term fluctuations, investors used the opportunity to increase their equity allocations, resulting in record SIP inflow, he added.

Vaibhav Chugh, CEO, Abakkus Mutual Fund, said investors have been seeing every fall in the market as an opportunity to invest rather than exit, as distributors and advisors played a crucial role in turbulent times. Despite weak performance by small caps for past sometime, investors have added allocations as they knew valuations have fallen from 10-year averages, he added.

The overall equity assets under management plunged 10 per cent last month to ₹31.98 lakh crore (₹35.39 lakh crore) due to mark-to-market loss, according to the Association of Mutual Funds in India data released on Friday.

Venkat Chalasani, CEO, Association of Mutual Funds in India, said retail investors have reposed their faith in MF investments even while the markets remain most volatile on the back of geopolitical tensions and inflation worries.

The long-term economic growth story of India led by buoyant consumption still remains intact, and this will support SIP inflows, he added.

While the job losses in the IT sector remain a concern, there are new jobs being created across sectors, and this should support investments in MFs in the long run, he said.

The debt funds registered an outflow of ₹2.94 lakh crore, with almost all the schemes registering a net outflow due to advance tax commitment before the quarter ended.

Despite mark-to-market loss in MF equity schemes, the Specialised Investment Funds asset increased 9 per cent to ₹10,620 crore against ₹9,711 crore in February as the fund houses used the equity derivatives market to hedge investments.

Suranjana Borthakur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India), said sectoral and thematic funds, which had pulled in ₹1.47 lakh crore in FY25, collapsed to ₹30,000 crore, an 80 per cent fall that reflects the hangover from momentum-chasing. ELSS recorded its first-ever full-year net outflow, a structural shift with no reversal in sight given the new tax regime, he added.

Published on April 10, 2026