May-25 SIP flows at ₹26,688 Crore; SIP stoppage eases to 72%

11 Jun 2025 , 02:05 PM

Tag Words

#SIP #MFSIP #MutualFunds #SIPAUM #StoppageRatio

THE SIP FOLIO CLEAN-UP IS FINALLY OVER

If you have been wondering why the SIP stoppage ratio had scaled up to 353% (revised up from 296%) in April 2025, it was part of a one-time exercise to clean up dormant folios. SEBI had set stringent norms for classification of dormant SIP folios, but that was applied prospectively from April 2024. That still left a huge legacy of folios to be cleaned up. Between January 2025 and April 2025, AMFI had undertaken a massive reconciliation of MF folio data with the registrars and stock exchanges. The net result is that scores of dormant folios have been cleaned up and the ratio of contributing SIP folios is much higher now. More importantly, with the completion of the exercise, the SIP Stoppage Ratio is now back to a more palatable 72%. Any changes from here will be purely on investor demand.

ANNUAL SIP FLOW GROWTH STAYS ROBUST

The progressive fall in monthly SIP flows between Dec-24 and Mar-25 was arrested in April and May as flows bounced back. Gross SIP flows in May 2025 were 27.7% above May 2024.

Monthly MF Data	Monthly SIP Inflows (₹ Crore)
May-24	20,904
Jun-24	21,262
Jul-24	23,332
Aug-24	23,547
Sep-24	24,509
Oct-24	25,323
Nov-24	25,320
Dec-24	26,459
Jan-25	26,400
Feb-25	25,999
Mar-25	25,926
Apr-25	26,632
May-25	26,688

Data Source: AMFI

Gross SIP flows into mutual funds averaged ₹24,113 Crore in FY25; the best in comparison to the previous 8 years. In fact, since October 2024, the monthly gross SIP flows have never gone below ₹25,000 Crore in any month. More importantly, the SIP flows have now been above ₹20,000 Crore for 14 months in succession.

FY25: NEW PEAK FOR GROSS SIP FLOWS ONCE AGAIN

The table captures month-wise SIP flows into mutual funds since April 2017. Each milestone of an additional ₹1,000 Crore has been highlighted in bold.

Month	FY26	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18
March		25,926	19,271	14,276	12,328	9,182	8,641	8,055	7,119
February		25,999	19,187	13,686	11,438	7,528	8,513	8,095	6,425
January		26,400	18,838	13,856	11,517	8,023	8,532	8,064	6,644
December		26,459	17,610	13,573	11,305	8,418	8,518	8,022	6,222
November		25,320	17,073	13,306	11,005	7,302	8,273	7,985	5,893
October		25,323	16,928	13,041	10,519	7,800	8,246	7,985	5,621
September		24,509	16,042	12,976	10,351	7,788	8,263	7,727	5,516
August		23,547	15,814	12,693	9,923	7,792	8,231	7,658	5,206
July		23,332	15,245	12,140	9,609	7,831	8,324	7,554	4,947
Jun		21,262	14,734	12,276	9,156	7,917	8,122	7,554	4,744
May	26,688	20,904	14,749	12,286	8,819	8,123	8,183	7,304	4,584
April	26,632	20,371	13,728	11,863	8,596	8,376	8,238	6,690	4,269

Data Source: AMFI

Here are two takeaways from the 8-year SIP flow data.

24. Fiscal year FY25, till date, is already the best year in terms of milestones, with 6 milestone months achieved; better than the 5 milestone months in FY24. Despite a new high in SIP flows; no new milestones have been created in FY26.
25. With average SIP flows at ₹24,113 Crore in FY25, a logical target would be to average over ₹30,000 Crore of gross SIP flows a month in FY26. While that may be tough in the first half of FY26, that is a target one can look at in the second half of FY26.

Let us now get into the SIP story in greater detail.

READING BETWEEN THE LINES OF THE SIP TICKET STORY?

Since FY22, SIP flows have been progressively improving each year; with FY25 being the best year by a margin.

Financial Year	Gross Annual SIP flows (₹ Crore)	Average Monthly SIP Ticket (AMST)	YOY Accretion in (%)
FY16-17	₹43,921 Crore	₹3,660 Crore
FY17-18	₹67,190 Crore	₹5,600 Crore	53.01%
FY18-19	₹92,693 Crore	₹7,725 Crore	37.95%
FY19-20	₹100,084 Crore	₹8,340 Crore	7.96%
FY20-21	₹96,080 Crore	₹8,007 Crore	-3.99%
FY21-22	₹124,566 Crore	₹10,381 Crore	29.65%
FY22-23	₹155,972 Crore	₹12,998 Crore	25.21%
FY23-24	₹199,219 Crore	₹16,602 Crore	27.73%
FY24-25	₹289,352 Crore	₹24,113 Crore	45.24%
FY25-26	₹319,920 Crore	₹26,660 Crore	10.56%

Data Source: AMFI

If you look at the yoy growth in average SIP ticket size, the FY25 growth is substantially higher than the average of the previous 3 fiscal years. The FY26 growth rate may need more data points as we have annualized 2 months of gross SIP flows. Also, there is promise of improvement, since the SIP stoppage issue has now been contained.

SIP FOLIOS ARE NOW CLEANER AND MEANER

SIP folios in May 2025 showed a small bounce after 4 months of contraction; triggered by a spike in SIP stoppage ratio. Gross SIP accretions in May 2025 were sharply higher MOM at 59.15 Lakhs. This is the highest gross SIP folio accretion since October 2024. With a sharp fall in the SIP stoppage ratio from 353% in April to 72% in May 2025; outstanding SIP folios bounced from 889.08 Lakhs as of April 2025 to 905.57 Lakh folios as of May 2025. The sharp folio contraction between January and April 2025 has been due to a reconciliation exercise to clean up the legacy dormant SIP folios. That is now completed!

What about SIP AUM yoy? Between April 2025 and May 2025, the SIP AUM bounced from ₹13,89,655 Crore to ₹14,61,360 Crore; a bounce of 5.16% on sequential basis. While the bounce in the Nifty and Sensex helped the SIP AUM bounce back, the move should now be more secular with most of the dormant SIP folios out of the system. That is the good news!

SIP STOPPAGE RATIO – MODERATES FROM 353% TO 72%

The gap between gross SIP folios reported by AMFI, and net SIP flows is explained by SIP stoppage ratio. It is the ratio of SIP accounts discontinued to new SIP accounts opened. The table below captures month-wise SIP stoppage ratio since April 2024.

Apr-24	May-24	Jun-24	Jul-24	Aug-24	Sep-24	Oct-24	Nov-24
52.24%	88.38%	58.68%	51.40%	57.14%	60.72%	60.91%	79.12%
Dec-24	Jan-25	Feb-25	Mar-25	FY25	Apr-25	May-25
82.75%	109.15%	122.76%	128.27%	75.63%	352.79%	72.12%

Data Source: AMFI

Between July and December, SIP stoppage ratio was rising due to the sense of uncertainty at higher levels of the market. Between Jan-25 and Apr-25, the spike in SIP stoppage ratio was due to the reconciliation between MF registrars and stock exchanges. That is done and dusted. At 72%, SIP stoppage ratio in May 2025 is still high, but it needs time to moderate.

GOING AHEAD, SIP STOPPAGE WILL GIVE THE REAL PICTURE

Here is the SIP stoppage ratio in last 6 completed  fiscal years, including FY25.

FY 2019-20	FY 2020-21	FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25	FY 2025-26 #
57.84%	60.88%	41.74%	56.94%	52.41%	75.63%	194.92%

Data Source: AMFI (# – 2 months data)

Remember, SIP stoppage ratio for FY25 was already well above the COVID pandemic levels. Even if you factor in the reconciliation explanation between January and April 2025, the SIP stoppage ratio was already higher than the COVID peak. FY26 data has only 2-months SIP flow data and could distort a longer term view. A total of 1.43 Crore SIP folios were ejected out of the system between December 2024 and April 2025.

The good news is; despite the sharp contraction in SIP folios, overall mutual fund folios have grown. That shows addition to debt folios and also some shift from SIPs to lumpsum investing. More importantly, the gross SIP flows continue to be robust month after month. The sharp recovery in the SIP stoppage ratio from 353% in April to 72% in May 2025 is an important indicator that the worst may be over. It is about when the best will come!