SIP flows at ₹25,999 Crore in Feb-25; SIP stoppage spikes to 122.8%

13 Mar 2025 , 11:47 AM

SIP FLOWS: LOWEST IN 3 MONTHS, BUT ONLY JUST

After touching SIP inflows of ₹26,459 Crore in December 2024, the gross SIP flows tapered slightly in January 2025 to ₹26,400 Crore. In February 2025, the gross SIP flows slipped further to ₹25,999 Crore, but still remains robust in absolute terms. For the first 11 months of FY25, SIP flows averaged ₹23,948 Crore a month. The gross SIP inflows at ₹25,999 Crore in February 2025 was a good 8.6% above the average of FY25. On the positive side, the gross SIP flows have now held above ₹25,000 Crore for 5 months in a row. Total MF SIP folios stand at 23.23 Crore as of Jan-25; of which SIP folios are 10.17 Crore (43.8%). The month of January 2025 saw overall mutual fund AUM contract from ₹67.25 Trillion to ₹64.53 Trillion.

SIPS LOWER, YET ROBUST, IN FEBRUARY 2025

The fall in monthly SIP flows in February 2025 is the kind of volatility that is normal at these levels. Annualized gross SIP flows of FY25 are 44.3% above FY24.

Monthly MF Data	Monthly SIP Inflows (₹ Crore)
Feb-24	19,187
Mar-24	19,271
Apr-24	20,371
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

Data Source: AMFI

Gross SIP flows into mutual funds have now averaged ₹23,948 Crore in the first 11 months of FY25. It looks like the younger crowd is not only gravitating towards equity mutual fund SIPs, but also persisting with SIPs in tough conditions. This can be seen as indicative of systematic financial planning, where mutual funds are a critical tool of asset allocation.

FY25: MILESTONES TAKE A BACKSEAT FOR NOW

The table below captures month-wise SIP flows into mutual funds since April 2016. Each milestone of an additional ₹1,000 Crore has been highlighted in bold.

Month	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17
March		19,271	14,276	12,328	9,182	8,641	8,055	7,119	4,335
February	25,999	19,187	13,686	11,438	7,528	8,513	8,095	6,425	4,050
January	26,400	18,838	13,856	11,517	8,023	8,532	8,064	6,644	4,095
December	26,459	17,610	13,573	11,305	8,418	8,518	8,022	6,222	3,973
November	25,320	17,073	13,306	11,005	7,302	8,273	7,985	5,893	3,884
October	25,323	16,928	13,041	10,519	7,800	8,246	7,985	5,621	3,434
September	24,509	16,042	12,976	10,351	7,788	8,263	7,727	5,516	3,698
August	23,547	15,814	12,693	9,923	7,792	8,231	7,658	5,206	3,497
July	23,332	15,245	12,140	9,609	7,831	8,324	7,554	4,947	3,334
Jun	21,262	14,734	12,276	9,156	7,917	8,122	7,554	4,744	3,310
May	20,904	14,749	12,286	8,819	8,123	8,183	7,304	4,584	3,189
April	20,371	13,728	11,863	8,596	8,376	8,238	6,690	4,269	3,122

Data Source: AMFI

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

1. Fiscal year FY25, till date, is already the best year in terms of milestones, with 6 milestone months achieved. That is better than the 5 milestone months in FY24. However, the tide appears to have turned downwards.
2. What was the average gap between two milestones? A quick ballpark figure is 3-6 months, although it is just 2 months in FY24 and less than 2 months in FY25. The FY25 average SIP is about 6.42X times the average SIP size in FY17.

With average SIP flows at ₹23,948 Crore in FY25, a logical target by June 2025 would be to stabilize at around ₹30,000 Crore of gross SIP flows a month.

READING BETWEEN THE LINES OF THE SIP TICKET STORY?

Since FY22, SIP flows have been progressively improving each year; with FY25 already 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	₹287,374 Crore	₹23,948 Crore	44.25%

Data Source: AMFI

Gross SIP flows of FY25 had already overtaken SIP flows of FY24, long back. More importantly, the growth in gross SIP flows yoy is better than any of the post-COVID years, which has anyways, seen robust growth in SIP value.

RETAIL INTENSITY OF SIP FOLIOS IN FEBRUARY 2025

The SIP folios actually contracted for the second month in a row due to the SIP Stoppage Ratio touching 122.8%. Gross SIP accretions in February 2025 were subdued at 44.56 Lakhs; compared to 56.19 Lakhs in January, 54.27 Lakhs in December, 49.47 lakhs in November, and 63.70 Lakhs in October 2024. However, due to the SIP stoppage ratio at 122.8%, the outstanding SIP folios decreased from 1,026.89 Lakhs in January 2025 to 1,016.75 Lakhs in February 2025. The net reduction is (10.14) Lakh SIP folios or -0.99%.

What about SIP AUM yoy? Between January 2025 and February 2025, the SIP AUM fell sharply from ₹13,19,853 Crore to ₹12,37,784 Crore; a fall of (6.22%) on sequential basis. While the weakness in the indices played spoilsport, the contraction in net SIPs also played a big part. As of the close of February 2025, the SIP folios accounted for 43.78% of total MF folios while the SIP AUM accounted for 19.18% of the overall MF AUM.

SIP STOPPAGE RATIO – ABOVE 100% FOR SECOND MONTH IN  ROW

AMFI reports monthly SIP flows on a gross basis. That gap between gross and net SIP flows is explained by SIP stoppage ratio; the ratio of SIP accounts discontinued to new SIP accounts opened. Lower the SIP Stoppage Ratio. In January and February 2025, the SIP Stoppage ratio has been above 100%; in fact, sharply widening to 122.76% in Feb-25.

Apr-24	May-24	Jun-24	Jul-24	Aug-24	Sep-24
52.24%	88.38%	58.68%	51.40%	57.14%	60.72%
Oct-24	Nov-24	Dec-24	Jan-24	Feb-24	FY25 #
60.91%	79.12%	82.73%	109.15%	122.76%	72.32%

Data Source: AMFI (# – 11 months data)

Since July, the SIP stoppage ratio is consistently up; due to the sense of uncertainty at higher levels of the market and in the light of the sell-off by FPIs. However, after recording all-time high SIP stoppage ratio of 109.15% in Jan-25, it has widened further to 122.76% in Feb-25.

FY25 ANNUALIZED SIP STOPPAGE RATIO WELL ABOVE PANDEMIC PEAK

Here is the SIP stoppage ratio in last 5 completed  fiscal years and for 11 months of FY25.

FY 2019-20	FY 2020-21	FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25 #
57.84%	60.88%	41.74%	56.94%	52.41%	72.32%

Data Source: AMFI (# – 11 months data)

The SIP stoppage ratio for FY24 at 52.41% was lower than FY23. However, FY25 has seen a spike in the SIP stoppage ratio to 72.32%; with SIP stoppage ratio above 100% for two months in a row. The SIP Stoppage Ratio for FY25 is now well above the pandemic peaks, showing that investors are worried about high index levels and global uncertainty. The Trump tantrums are only making things worse for investor confidence. A SIP stoppage ratio of 40% to 45% is acceptable. The big challenge for the mutual fund AMCs in India is how to bring this SIP stoppage ratio back to more rational levels.