SIP flows at ₹26,400 Crore in Jan-25, but SIP stoppage crosses 100%

13 Feb 2025 , 11:22 AM

SIP FLOWS: IT IS ALL ABOUT THE AVERAGES

After crossing the ₹26,000 Crore milestone in December 2024, gross SIP flows tapered slightly in January 2025 to ₹26,400 Crore. However, it looks more like a rounding off. For the first 10 months of FY25, SIP flows averaged ₹23,743 Crore a month. The gross SIP inflows at ₹26,400 Crore in January 2025 was marginally lower than ₹26,459 Crore in December 2024; but a good was a good 11.2% above the average of FY25. On the positive side, the gross SIP flows have now held above ₹25,000 Crore for 4 months in a row. Total MF SIP folios stand at 22.92 Crore as of Jan-25; of which SIP folios are 10.27 Crore (44.8%). The month of January 2025 saw overall mutual fund AUM expand from ₹66.93 Trillion to ₹67.25 Trillion.

SIPS LOWER, YET ROBUST, IN JANUARY 2025

The slight fall in monthly SIP flows in January 2025 is the kind of volatility that is normal at these levels. SIP flows are up 40.1% yoy.

Monthly MF Data	Monthly SIP Inflows (₹ Crore)
Jan-24	18,838
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

Data Source: AMFI

Gross SIP flows into mutual funds have now averaged ₹23,743 Crore in the first 10 months of FY25. The customer mix is also making a difference; with the younger crowd gravitating towards equity mutual fund SIPs to create long term wealth in a systematic manner. This can also be seen as indicative of systematic financial planning, where mutual funds are a critical goal in asset allocation, once the long-term goals are crystallized.

FY25: THE BEST YEAR IN TERMS OF MILESTONES

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		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.

24. Fiscal year FY25, till date, is already the best year in terms of milestones, with 6 milestone months achieved. That is even better than the 5 milestone months in FY24. We still have 2 more months to go.
25. 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 6.49X times the average SIP size in FY17.

With average SIP flows at ₹23,743 Crore in FY25, a logical target by March 2025 would be to stabilize at around ₹30,000 Crore SIP flows a month.

READING INTO 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	₹284,912 Crore	₹23,743 Crore	43.01%

Data Source: AMFI

Gross SIP flows of FY25 had already overtaken SIP flows of FY24 in the first 9 months itself. The CAGR accretion in SIP flows in the last 4 full years post the pandemic has been 31.23%.

SIP FOLIOS IN JANUARY 2025 – HOW IS RETAIL INTENSITY?

After a very long time, the SIP folios actually contracted in January 2025 due to the SIP Stoppage Ratio crossing 100%. Gross SIP accretions in January 2025 at 56.19 Lakhs was still healthy compared to 54.27 Lakhs in December and 49.47 lakhs in November; albeit still lower than the 63.70 Lakhs in October. However, due to the SIP stoppage ratio crossing 10%, the outstanding SIP folios decreased from 1,032.03 Lakhs in December 2024 to 1,026.89 Lakhs in January 2025. The net reduction is(5.14) Lakh SIP folios or -0.50%.

What about SIP AUM yoy? Between December 2024 and January 2025, the SIP AUM fell sharply from ₹13,63,137 Crore to ₹13,19,853 Crore; a fall of (3.18%) 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 January 2025, the SIP folios accounted for 44.80% of total MF folios while the SIP AUM accounted for 19.62% of the overall MF AUM.

SIP STOPPAGE RATIO – CROSSES 100% IN JANUARY 2025

AMFI reports monthly SIP flows on a gross basis. That gap between gross and net SIP flows is explained by the SIP stoppage ratio; the ratio of SIP accounts discontinued to new SIP accounts opened. Lower the SIP Stoppage Ratio. The table below captures how the SIP stoppage ratio crossed 100% for the first time in January 2025.

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	FY25 #
60.91%	79.12%	82.73%	109.15%	68.55%

Data Source: AMFI (# – 9 months data)

Since July, the SIP stoppage ratio is consistently up; due to the sense of uncertainty at higher levels of the market. However, this is for the first time that the SIP stoppage ratio has spiked to as high as 109.15%.

FY25 ANNUALIZED SIP STOPPAGE RATIO WELL ABOVE PANDEMIC PEAK

Here is the SIP stoppage ratio in last 5 completed  fiscal years and for 9 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%	68.55%

Data Source: AMFI (# – 9 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 68.55%; spiking 400 bps since December 2024. The SIP Stoppage Ratio is now well above the pandemic peaks, showing that investors are worried about high index levels and global uncertainty. A SIP stoppage ratio of 40% to 45% is acceptable. Mutual funds must arrest the spike in SIP stoppage ratio, to ensure that the gains of financialization of savings are not frittered away.