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Systematic Investment Plans (SIPs) may see monthly inflows rise to INR 40,000 crore within the next 18-24 months, according to Union AMC CEO Madhu Nair. In FY25, SIP inflows averaged INR 24,113 crore per month, up from INR 16,602 crore in FY24, supported by rising disposable incomes and tax breaks. The new tax regime from April 2025, offering relief for incomes up to INR 12 lakh, is expected to boost savings and mutual fund participation. Despite a slight drop in SIP accounts, AUM rose to INR 13.31 lakh crore. Union AMC is also eyeing expansion into AIFs, SIFs, and GIFT City to broaden its investment platform.
Systematic Investment Plans (SIPs), one of the most popular ways for retail investors to enter the mutual fund market, could see monthly inflows rise to INR 40,000 crore over the next 18-24 months. This projection comes from Madhu Nair, CEO of Union Asset Management Company (AMC), who says rising disposable incomes and tax-friendly policies are encouraging more people to invest regularly. Advertisement
In March 2025, SIP inflows stood at INR 25,925 crore. While this was slightly lower due to recent market volatility caused by global trade tensions, the overall trend remains strong. On average, SIP contributions in FY2024-25 touched INR 24,113 crore per month, up from INR 16,602 crore in the previous year-indicating growing maturity among investors.
Starting April 1, 2025, the government's new tax regime offers full income tax relief to individuals earning up to INR 12 lakh a year. This means more take-home income, which is expected to boost household savings and investments-particularly in SIPs, which offer a low-entry, long-term way to invest in mutual funds.
SIPs allow people to invest as little as INR 250 every month, making them ideal for salaried individuals and first-time investors. This method helps spread risk and avoid the need for large lump-sum investments, especially during volatile market phases.
Even though the number of SIP accounts fell slightly to 8.11 crore in March 2025 from 8.4 crore a year earlier, overall assets under management (AUM) for SIPs rose to INR 13.31 lakh crore. The mutual fund industry's total AUM also grew 23% year-on-year to INR 65.74 lakh crore.
Equity mutual funds saw significant inflows of INR 4.17 lakh crore in FY25, more than double the INR 1.84 lakh crore in FY24. This shift signals growing trust in equity markets as an investment option, supported by strong corporate earnings and favourable economic conditions.
Union AMC recently upgraded its view on Indian equity markets, moving them into the 'attractive zone' based on internal valuation models. This comes after months of caution when markets were seen as 'fair' or 'moderately expensive.' The upgrade reflects stronger earnings, stable macroeconomic data, and renewed investor interest.
To promote disciplined investing, the company has launched a new SIP campaign titled 'Badhna Hai Toh Lagey Raho, SIP Karo', encouraging people to stay committed to their investment goals, despite short-term market movements.
Union AMC is also planning to diversify its offerings by entering the Alternative Investment Funds (AIFs) and Specialized Investment Funds (SIFs) space. It is also working on setting up operations in GIFT City, Gujarat's international financial centre-showing its intention to grow beyond traditional mutual fund products.
With better awareness, favourable tax policies, and steady income growth, SIPs are likely to remain a key part of how Indians invest-slowly building long-term wealth, one month at a time.
Source: PTI
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