Indian equity mutual fund investors are increasingly favouring established schemes with a consistent track record, even as growth in new systematic investment plan (SIP) accounts slows. The trend suggests that existing investors are continuing to invest and add money to their portfolios, while attracting new participants is becoming a challenge for the industry.
Existing Investors Support Equity Fund Inflows
Actively managed equity mutual funds recorded a 5% increase in net inflows during the first half of the financial year 2026–27 compared with the corresponding period a year earlier.
Continued SIP contributions, investments during market declines and investors staying invested for longer periods helped support the inflows. This indicates that a significant part of the industry’s growth is coming from people who already invest in mutual funds.
New Investor Growth Shows Signs of Slowdown
The number of new contributing SIP accounts across asset classes declined to approximately 34 lakh, compared with 1.14 crore in the corresponding period a year earlier.
Meanwhile, collections through new fund offers for actively managed equity schemes fell 67% to ₹5,201 crore. These figures point to a more challenging environment for attracting fresh investments through new accounts and newly launched schemes.
What This Means for Mutual Fund Investors
The trend highlights the importance of evaluating mutual funds on their investment strategy, costs, risk level and long-term performance rather than choosing a scheme simply because it is new or popular.
Investors should also remember that past performance does not guarantee future returns. Equity mutual funds remain exposed to market fluctuations, and investment decisions should reflect individual financial goals and risk tolerance.
