Mutual Fund Adoption by Households: SIP Accounts Hit 81.1 Million
Why in the news
Household investors are turning to mutual funds in a big way, investing in staggered instalments and staying invested for longer.
Key facts
| Indicator | Figure |
|---|---|
| SIP accounts | 81.1 million (March 2025), from 63.8 million (April 2024) |
| SIP inflows | ₹2.9 trillion, from ₹2 trillion |
| SIP assets in 5-year-plus accounts | 33% (regular plans), 19% (direct plans) |
| SIPs held by accounts older than 2 years | Over 60% |
| Passive index fund inflows (FY 2024-25) | ₹59,306 crore, up 278% year on year |
- Most investors prefer equity funds and hybrid schemes.
Significance
- Better capital for new businesses; diversified, professionally managed portfolios cut the risk of capital erosion; long-term equity returns build household wealth.
Exam angle
- SIP: systematic investment plan; hybrid schemes mix income and equity.