Fueled by increasing disposable incomes and growing awareness about disciplined investing, the monthly SIP inflow in the industry of the investment funds could scale up to £ 40,000 crore during the next 18-24 months, according to Madhu NIR, CEO of Union Asset Management Company (AMC).
SIP inflow stood at £ 25,925 Crore in March, although the industry has seen a falling trend in the past four months amid increased market volatility caused by frequent American tariff changes.
Despite this short -term dip, the wider image remains optimistic. In 2024-25, the average monthly SIP contribution rose to £ 24.113 Crore, a considerable jump of £ 16,602 Crore in the previous tax year.
This rise emphasizes the growing adulthood of retail investors, who increasingly recognize the benefits of systematic investing.
SIP account numbers, however, decreased slightly, from 8.4 crore in March 2024 to 8.11 Crore in March 2025.
The SIP activa in control (AUM) continued to grow and reached RS 13.31 Crore in March 2025 compared to RS 10.71 Lakh Crore that was registered last year.
Nair explained the basis of his optimism and mentioned the introduction of a more investor-friendly tax regime and improved market assessments. These factors, he said, will probably encourage more individuals to start or increase their SIP contributions.
Under the new tax regime with effect from April 1, 2025, people who earn up to £ 12 annually are exempt from income tax. This substantial boost in the disposable income is expected to produce higher savings in domestic household investments, such as SIPs.
SIPs remain a favorite investment vehicle among retail investors, so that individuals can invest small amounts starting from £ 250- with regular intervals in regulations for investment funds. This disciplined approach not only reduces the burden of lumpy investments, but also helps to reduce market volatility over time.
The investment fund industry mainly depends on SIPs for inflow, while Equity investment funds saw an inflow of RS 4.17 Lakh Crore into FY25, considerably higher than the £ 1.84 Lakh Crore registered in FY24.
This substantial increase can be attributed to an improved investor sentiment powered by robust business profits, favorable macro -economic conditions and a continuous shift to the own ability as a preferred class.
The regular monthly increase in SIP flows facilitated the industry to grow its AUM by 23 percent to £ 65.74 Lakh Crore in March 2025, an increase of £ 53.40 Lakh Crore in March 2024.
In the meantime, Union Mutual Fund has upgraded Indian stock markets to the “attractive zone” in the real value spectrum indicator, according to its last pedigree of the market report.
This is a remarkable shift from the “Beurs” and “moderately expensive” zones where the markets held most of 2024. The upgrade reflects the improvement of the ratings, powered by strong domestic fundamentals and resilient growth of the operating result.
To emphasize the importance of invested interest in the long term, Nair said: “It is human nature to overestimate the short -term impact and to underestimate the potential for long term. We believe in the long -term promise of the Indian economy and stock markets in the next 10 to 15 years.”
He said that this long-term vision forms the basis of the latest SIP campaign from Union AMC, ‘Badhna Hai Toh Lagey Raho, Sip Karo’, who encourages investors to remain disciplined and targeted despite market sound.
Looking ahead, Nair shared the company’s plans for 2025-26, including the expansion of specialized investment funds (SIF), alternative investment funds (AIFs) and a presence in Gift City.
These movements signal the intention of the Union AMC to grow outside the traditional range of investment funds and to use broader investment options.
Published on April 14, 2025
