SIP Trends 2025: Record Highs Hide a Deeper Story

Picture this: You’re at your favourite street food vendor, and the queue is longer than ever. But here’s the twist while more people are joining the line, many are also leaving midway. This is exactly what’s happening with SIPs in 2025. Record inflows tell one story, but the complete picture reveals something more nuanced.  

As a SEBI Registered Investment advisor, I’ve witnessed firsthand how SIP trends can sometimes mislead investors. The numbers look impressive on the surface, but understanding the underlying currents is crucial for wealth management success. 

The Record-Breaking Numbers That Don’t Tell the Full Story 

SIP contributions reached an all-time high of ₹27,269 crore in June 2025. This milestone represents consistent growth from ₹25,999 crore in February, showcasing the power of systematic investing. The number of contributing SIP accounts touched 8.64 crore in June, reinforcing India’s growing appetite for disciplined wealth creation. 

These figures would make any portfolio management services provider proud. Yet, the growth story isn’t as straightforward as it appears. Despite record inflows, the net addition of active SIP accounts remained modest growing from 8.26 crore in February to 8.64 crore in June. 

The Great SIP Cleanup: What Really Happened in April 

The most dramatic development came in April when 162.3 lakh SIPs closed in a single month. This wasn’t panic selling but a regulatory housekeeping exercise. SEBI’s new guidelines required fund houses to clean up dormant accounts those SIPs that had missed multiple instalments. 

Think of it like your phone automatically deleting old, unused apps. The functionality wasn’t being used, so the system cleared it out. This one-time cleanup distorted the numbers but provided a cleaner, more accurate picture of genuine SIP participation. 

Why Are Investors Stopping SIPs Despite Strong Markets? 

Several factors beyond market volatility are influencing investor behaviour: 

Return Expectations: Many investors entered SIPs expecting consistent double-digit returns. When certain categories like mid-cap and small-cap funds delivered uneven short-term performance, some investors became cautious. 

Digital Savviness: Today’s investors switch between investment options faster than ever. Mobile apps make it easy to start and stop SIPs, leading to higher churn rates.  

Global Uncertainties: Geopolitical tensions and trade policy changes have added layers of complexity to investment decisions. 

The Real Culprit: SIP Closures, Not Lack New Registrations 

New SIP registrations hit 61.9 lakh in June a record high. The challenge isn’t attracting new investors but retaining existing ones. The stoppage ratio, which measures closures against new registrations, remained elevated throughout 2025. 

This pattern suggests that while Indians are embracing SIPs for wealth creation, many are not staying committed to the discipline required for long-term success. 

Which Fund Categories Should You Consider? 

The performance data reveals interesting patterns across different fund categories: 

Large-cap funds offer stability during uncertain times. These funds focus on established companies with strong Roots – solid balance sheets, low debt, and quality management. They’re ideal for conservative investors seeking steady wealth management. 

Mid-cap funds have delivered impressive 25.5% returns over three years. These funds embody the Wings philosophy – consistent growth and market leadership potential. They strike a balance between risk and reward. 

Small-cap funds require patience but can reward disciplined investors. A company with ₹30,000 crore market cap can still be classified as small-cap, showing how much our economy has expanded. 

Thematic funds need careful consideration. While they attracted ₹15,340 crore monthly inflows in 2024, this dropped to ₹1,400 crore by April 2025. Many schemes declined over 20%, highlighting the risks involved. 

Why SIP Discipline Matters More Than Ever 

The current trends reinforce why systematic investing works. Despite market volatility and regulatory changes, SIPs continue attracting record inflows. This demonstrates the power of rupee cost averaging and disciplined wealth creation. As your SEBI Registered Investment advisor, I recommend maintaining SIP discipline regardless of short-term market movements. The investors who stayed committed during volatile periods historically achieved better outcomes than those who timed the market. 

Practical Steps for SIP Investors 

1. Diversify across categories: Don’t put all eggs in one basket 

2. Review annually, not monthly: Avoid reacting to short-term performance 

3. Increase SIPs with income growth: Step up your investments periodically 

4. Focus on asset allocation: Balance growth and stability based on your risk profile 

The Maxiom Wealth Approach: LSG Framework for SIP Success 

At Maxiom Wealth, we follow the LSG framework for asset allocation: 

Liquidity: Ensure adequate emergency funds before starting SIPs 
Safety: Build a foundation with large-cap and hybrid funds 
Growth: Add mid-cap and small-cap exposure for long-term wealth creation 

This approach aligns with our Roots & Wings investment philosophy. Strong foundations (Roots) provide stability, while growth-oriented investments (Wings) drive wealth multiplication. 

To Sum Up 

The SIP story of 2025 teaches us that surface level numbers can be deceiving. While record inflows indicate growing confidence in mutual funds, the high closure rates remind us that investment success requires patience and discipline. 

For wealth creation through SIPs, focus on building a diversified portfolio using the LSG framework. Remember, the goal isn’t just starting SIPs but staying committed to them. This discipline, combined with professional portfolio management services, can help you achieve your financial goals. The key is understanding that every market cycle offers opportunities. Those who maintain their SIP discipline during uncertain times often benefit the most when markets recover. 

Consider consulting a SEBI Registered Investment advisor to create a personalised SIP strategy that aligns with your goals and risk appetite. After all, wealth creation isn’t just about investing money. it’s about investing wisely and staying the course.