SIP investments hit record high in December 2025 as retail participation strengthens

Indian mutual fund investors ended 2025 on a confident note, continuing disciplined long-term investing despite market volatility. Data from the Association of Mutual Funds in India (AMFI) shows record SIP inflows and sustained interest in equity and hybrid schemes in December.

The industry’s total assets under management (AUM) stood at Rs 80.23 lakh crore in December, slightly lower than Rs 80.80 lakh crore in November. Analysts attributed the dip to debt fund outflows for liquidity management and modest market valuation changes. Still, the average AUM (AAUM) remained high at Rs 81.99 lakh crore, reflecting steady contributions from investors throughout the month.

SIP culture saw a remarkable boost. Monthly SIP contributions touched an all-time high of Rs 31,001.67 crore in December, pushing total SIP assets to Rs 16.63 lakh crore. Systematic Investment Plans now account for over 20% of the mutual fund industry’s total assets. Venkat Chalasani highlighted that year-on-year AUM growth of 19.9% reflects stronger participation and wider adoption of mutual funds among retail investors. The number of active SIP accounts reached nearly 9.8 crore, demonstrating how monthly investing has become a habit for salaried and middle-income households.

Retail investors showed strong interest in equity and hybrid funds. Retail mutual fund folios crossed 20.27 crore by December-end, while retail AUM in equity, hybrid, and solution-oriented schemes stood at Rs 47.36 lakh crore. December marked the 58th consecutive month of positive equity inflows, signaling sustained investor discipline even during uncertain periods.

Equity and hybrid schemes remained active, with both fresh investments and redemptions. Akhil Chaturvedi, Executive Director at Motilal Oswal AMC, said equity gross sales grew 7% month-on-month to Rs 72,808 crore, while hybrid sales rose 17% to Rs 16,548 crore. Flexi-cap funds attracted strong inflows, aided by new fund offers, while multi-asset allocation funds recorded record gross sales of about Rs 9,000 crore. Precious metal funds also saw demand, with gold and silver schemes attracting over Rs 10,000 crore in inflows.

Experts noted higher redemptions in December reflected profit booking rather than fear. Equity funds still posted net inflows of around Rs 29,500 crore, and hybrid funds remained net positive. Chaturvedi emphasized that profit-taking, not risk aversion, drove these moves, confirming sustained investor confidence.

New fund launches continued momentum. The industry introduced 29 open-ended schemes in December, collectively raising Rs 5,773 crore. Specialized investment funds (SIFs) also gained traction, with assets reaching Rs 4,892 crore. Hybrid strategies dominated inflows in this category.

For everyday investors, the message is clear. Short-term market movements may influence headline AUM, but disciplined investing through SIPs and diversified funds remains robust. The rise in folios and record monthly contributions indicate that more Indians view mutual funds as a long-term wealth-building tool rather than a short-term gamble.

In conclusion, December 2025 confirmed the resilience of retail investors in India. SIPs reached record highs, equity and hybrid funds remained strong, and disciplined investing continued to drive long-term growth in the mutual fund sector.