Smallcap funds stand out with 55% SIP penetration, AUM surges 5x in 5 years: Crisil-AMFI report

Smallcap mutual funds now stand out with nearly 55% SIP penetration as of March 2026, with AUM surging nearly five times in the last five years, according to the AMFI–Crisil Fact Book 2025-26. The Fact Book was launched by AMFI on August 21, 2026.

According to the fact book, as of March 2026, SIP AUM in smallcap funds accounted for 55% of the category’s assets. SIP AUM rose to Rs 1.83 lakh crore as of March 2026 from Rs 35,489 crore in March 2021, registering a fivefold jump.

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In FY22, smallcap funds received a net inflow of Rs 0.1 lakh crore, followed by Rs 0.2 lakh crore in FY23. In FY24 and FY25, the net inflows in smallcap funds were Rs 0.4 lakh crore each. In FY26, these funds received a net inflow of Rs 0.5 lakh crore.

The other categories such as Equity-linked savings scheme (ELSS), largecap, large- and midcap and midcap funds have also seen steady growth in SIP penetration, with SIP AUM in the respective categories contributing to 40-50% of total category assets.

With the other categories also witnessing steady growth, this reflects their role as a core allocation route across market capitalisations.

SIP AUM in multicap funds rose to nearly Rs 0.62 lakh crore in March 2026 from Rs 0.08 lakh crore in March 2021, an almost eight-fold increase. However, dividend yield and value funds saw moderation in SIP AUM penetration.

The report further said that total SIP AUM (excluding fund of funds investing overseas) increased sharply from Rs 4.25 lakh crore to Rs 14.83 lakh crore, reflecting the growing institutionalisation of disciplined household investing.

How SIP contribution moved in 5 years

The monthly SIP contribution surged to Rs 32,087 crore in March 2026 from Rs 4,335 crore in March 2017, a 7.4-fold increase, with the growth occurring in two distinct phases.

Between March 2017 and 2021, monthly SIP contributions logged a CAGR of 20.6%. However, from April 2021 to March 2026, contributions clocked a growth rate of 30.7%, attributed to higher investor participation post Covid-19.

The cumulative gross SIP inflows between March 2017 and 2026 stood at Rs 14.79 lakh crore, with nearly 76.0% of inflows coming in the past five years. The trend underscores the increasing scale and consistency of SIP participation in recent years. Consequently, SIP assets have risen 3.5-fold between March 2021 and 2026.

SIP AUM

SIP AUM as a percentage of overall AUM increased from 13.5% as of March 2021 to 20.1% as of March 2026. The share of SIP AUM in total mutual fund industry AUM increased to 20.1% in March 2026 from 13.5% in March 2021.

Total SIP AUM (excluding fund of funds investing overseas) increased sharply from Rs 4.25 lakh crore to Rs 14.83 lakh crore, reflecting the growing institutionalisation of disciplined household investing. The report highlighted that India’s growing SIP AUM as a percentage of industry AUM is a testament to the country’s evolving investment landscape.

Equity remained the dominant component, with SIP AUM rising from Rs 3.46 lakh crore to Rs 12.85 lakh crore, reinforcing its role in long-term wealth creation through periodic investing.

Over the same period, hybrid SIP AUM increased from Rs 0.33 lakh crore to Rs 1.11 lakh crore, while passive SIP AUM rose from Rs 0.03 lakh crore to Rs 0.46 lakh crore. This suggests a gradual broadening of investor preferences towards allocation-led and low-cost strategies.

Taken together, the trend indicates SIPs are not only scaling up, but also deepening the quality and durability of retail participation in mutual funds.

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On the basis of age demographics, over the five years from March 2021 to March 2026, there was a notable shift in SIP investment patterns across various age groups. The proportion of SIP AUM to industry AUM increased significantly for those below 18 years from 37.3% to 46.0% and those between 35 and 58 years from 29.8% to 40.6%, indicating a growing inclination towards SIPs among these age groups.

Investors between 18 and 34 years of age, over the same period, maintained a relatively stable presence, with their proportion at 32.7% in March 2026. Meanwhile, older investors above 58 years increasingly adopted SIPs, with their proportion rising from 11.4% to 20.6%, reflecting greater participation by older investors in SIPs.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

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