India’s equity mutual fund industry has continued to show resilience in the first half of the 2026–27 financial year, even as growth in new Systematic Investment Plan (SIP) accounts and collections from new fund offers slowed considerably.
Net inflows into actively managed equity mutual fund schemes increased by 5% year-on-year . The trend indicates that existing investors continued contributing to equity funds despite market volatility and periodic corrections.
Existing Investors Support Mutual Fund Inflows
The industry recorded a significant slowdown in new SIP account additions. Only 3.4 million new contributing SIP accounts were added across asset classes compared with 11.4 million in the corresponding period a year earlier.
Collections from new fund offers (NFOs) of actively managed equity schemes also declined sharply. They fell from ₹15,658 crore in the first half of FY2025–26 to ₹5,201 crore in the same period of FY2026–27, marking a drop of approximately 67%.
Despite these challenges, existing investors continued to support the market by maintaining their SIPs and increasing their contributions.
Average SIP Investment Value Rises
The average assets held per SIP account increased by 14%, rising from ₹1.55 lakh .
More stable redemption activity and continued investor interest in mid-cap and small-cap funds also helped sustain equity mutual fund inflows during the period.
Financial advisers played a role in helping investors remain committed to their investments during uncertain market conditions.
SIP Stoppage Ratio Shows Improvement
The latest trend highlights a changing pattern in mutual fund participation: existing investors are contributing more to industry growth, while attracting new investors remains a key challenge.
