Systematic Investment Plan (SIP) inflows remained robust in January 2025, staying above ₹26,000 crore for the second consecutive month. Investors contributed ₹26,400 crore, slightly lower than the ₹26,459 crore recorded in December 2024, according to the Association of Mutual Funds in India (AMFI) data.

Despite market fluctuations, investors continued their commitment to SIPs.

Why are investors sticking to SIPs?

Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Research India, said, “Domestic investors continued with their investment spree into equity-oriented mutual funds in January, taking market corrections as an opportunity to increase exposure. This marked the 47th consecutive month of net inflows into the segment.”

SIP remains a preferred investment strategy due to its benefits:

• Disciplined investing: Automates investments, ensuring regular wealth accumulation.
• Rupee cost averaging: Investors buy more units when markets are low and fewer when high, reducing overall risk.
• Power of compounding: Long-term SIPs generate significant wealth by reinvesting returns.

How to start an SIP?

Select a mutual fund: Choose from equity, debt, or hybrid funds based on risk appetite and goals.

Register with an AMC or online platform: Open an account via a bank, broker, or fintech app.

Set SIP amount and frequency: Minimum investment starts at ₹500 per month. Investors can opt for weekly, monthly, or quarterly SIPs.

Enable auto-debit: Link a bank account for seamless and timely deductions.

While overall equity inflows dropped to ₹39,669.6 crore from ₹41,136 crore in December, SIPs continue to see strong participation. Experts believe investors are becoming more mature, viewing corrections as opportunities rather than reasons to exit.

With increasing awareness and accessibility, SIPs remain a go-to investment tool for retail investors looking for long-term wealth creation.