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India’s mutual fund industry witnessed strong inflows in January 2025, with assets under management (AUM) reaching ₹67.25 lakh crore. The month saw significant inflows across different market caps, with midcap funds receiving ₹5,148 crore and small-cap funds attracting ₹5,721 crore, underscoring investor confidence in these segments.
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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
However, a notable concern was the higher number of Systematic Investment Plans (SIPs) discontinued compared to new SIP registrations, prompting questions about the underlying reasons for this trend.
Key highlights from Jan 2025 mutual fund data:
| Category | Amount (₹ Cr) |
| Total AUM | 67,25,000 |
| Midcap Inflow | 5,148 |
| Small Cap Inflow | 5,721 |
| Large Cap Inflow | 3,063 |
SIPs, which are automated investment plans where investors contribute a fixed amount regularly to mutual funds, have been a popular choice among retail investors due to their disciplined approach and potential for long-term wealth creation. However, in January, while ₹26,400 crore was contributed through SIPs, there were 5.14 lakh more SIP closures than new registrations.
SIP registration trends in January 2025:
| Category | Amount |
| New SIPs | 56.19 lakh |
| SIPs Discontinued | 61.33 lakh |
| Net SIPs | -5.14 lakh |
| SIP Contribution (₹ Cr) | ₹26,400 |
Also Read: SIP inflows above ₹26,000 crore for second straight month in January
Are high SIP closures a sign of panic?
The simple answer is – no. While the data shows more SIP closures than new registrations, these closures often result from strategic decisions. Investors may close small SIPs to consolidate them into larger ones or adjust their portfolios to optimise returns.
Importantly, these closures don’t necessarily indicate exits from the market but reflect a recalibration of investment strategies.
Despite the dip in new SIPs, mutual fund inflows continue to reflect a stable investment climate, particularly for long-term investors. The trend suggests that while the SIP growth has slowed, overall confidence in India’s mutual fund sector remains strong.
(Edited by : Poonam Behura)
First Published: Feb 13, 2025 3:20 PM IST
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