SIP Investments: The Mainstay of Equity Mutual Funds! Continued Investor Interest in Mid-Cap and Small-Cap Funds

SABAPATHY NARAYANAN
Mutual Fund Distributor & Retirement Advisor (NPS)
Phone: 94440 67567 / 98842 91317
AMFI ARN: 46986
NPS Registration No.: RAN00000490I

Arun, who lives in Chennai, had been investing ₹10,000 every month through a mutual fund Systematic Investment Plan (SIP). Even as stock market volatility increased over the past few months, he continued his investments. Meanwhile, his friend Ramesh stopped investing as soon as the stock market began to fall, deciding to wait until the market recovered before investing again.

A few months later, Arun was surprised when he read a news report about investment inflows into mutual fund companies. Despite stock market fluctuations, lakhs of investors continued investing through SIPs. This highlights not only the confidence of individual investors but also the growth of India's mutual fund industry.

SIPs Strengthen Investment Flows!

In September 2026, investments made through SIPs in mutual fund schemes rose to ₹32,490 crore, marking the highest monthly figure recorded so far.

A SIP is an investment method in which a fixed amount is invested regularly, either weekly or monthly. It allows investors to continue investing without having to time every rise and fall in the stock market.

This investment method is particularly popular among salaried individuals and those with long-term financial goals.

Continuing investments not only when the stock market rises but also when it falls can play an important role in a long-term investment strategy. However, investors should remember that SIPs do not guarantee profits.

Increased Investments in Equity Mutual Funds!

In September, net inflows into equity-oriented mutual fund schemes stood at ₹38,300 crore, higher than the figure recorded in the previous month.

Furthermore, when equity-oriented schemes and hybrid schemes other than arbitrage schemes are considered together, the total net inflow rose to ₹41,800 crore. In the previous month, the corresponding inflow was ₹35,600 crore.

Large-cap funds, which invest in shares of large companies and had experienced investment outflows for two consecutive months, also saw renewed inflows in September. Investors appear to have used the decline in stock prices as an opportunity to invest in these schemes.

Which Types of Funds Are Attracting the Most Interest?

According to a report released by Capital 360 One, investors are expected to continue showing interest in large-cap, mid-cap and small-cap funds, as well as multi-asset schemes that invest across different asset classes, including gold and silver.

Investment trends in September 2026

Investment category	September 2026 figures	What investors should note
SIP investments	₹32,490 crore	Continued investor interest
Equity-oriented mutual funds	₹38,300 crore net inflows	Confidence in equity investments
Equity and eligible hybrid schemes combined	₹41,800 crore net inflows	Interest across different investment categories
Gold ETFs	₹4,500 crore net inflows	71% increase compared with the previous month
Silver ETFs	₹2,000 crore net inflows	55% increase compared with the previous month
Stock market ETFs	₹10,000 crore net inflows	38% increase compared with the previous month

Mid-cap funds invest in medium-sized companies, while small-cap funds invest in smaller companies. Although these businesses may have the potential to grow rapidly in the future, their share prices can experience greater volatility. Therefore, investors should not select these schemes solely because they expect higher returns.

Multi-asset schemes help diversify investments by allocating money across different asset classes, such as equities, debt instruments and gold. However, their performance varies depending on each scheme's investment strategy and risk profile.

Growing Interest in Gold and Silver Investments!

In September, gold ETFs received net inflows of ₹4,500 crore, an increase of 71% compared with August. Silver ETFs attracted ₹2,000 crore, representing a 55% increase from the previous month.

Similarly, inflows into stock market ETFs increased by 38%, reaching ₹10,000 crore.

In contrast, debt-oriented schemes and liquid funds, which invest in short-term money market instruments, experienced investment outflows. Investors may have shifted their money into different investment categories.

Why Did Mutual Fund Assets Under Management Decline?

The total assets under management (AUM) of the mutual fund industry stood at ₹87.09 lakh crore in August. In September, this figure declined to ₹82.60 lakh crore, representing a fall of approximately 5% in a single month.

However, this decline does not necessarily mean that all investors withdrew their money.

The total assets under management of mutual funds depend on several factors, including investment inflows, withdrawals and the market value of underlying assets such as shares. Even when investors continue investing, a decline in market prices can reduce the overall value of assets under management.

What Should Investors Do?

Although continuing to invest through mutual funds can be a good financial habit, the same type of fund may not be suitable for every investor. Fund selection should depend on the investment horizon, financial goals, risk tolerance and existing investments.

Investors saving for long-term goals, such as retirement, their children's higher education or purchasing a home, should periodically review their asset allocation. Before investing heavily in mid-cap and small-cap schemes, they should understand the risks associated with these investments.

In conclusion, SIP investments are expected to remain an important source of growth for the mutual fund industry. However, when stock market valuations are high, inflows into equity mutual funds may not continue increasing at the same pace.

Therefore, rather than making investment decisions based on short-term market movements, investors should focus on disciplined investing through schemes that align with their financial goals.

For More Details & Investment Assistance

SABAPATHY NARAYANAN
Mutual Fund Distributor & Retirement Advisor (NPS)
Phone: 94440 67567 / 98842 91317
AMFI ARN: 46986
NPS Registration No.: RAN00000490I

With nearly 25 years of experience in financial services, Sabapathy Narayanan provides investment and financial services covering Mutual Funds, Specialised Investment Funds (SIF), and Insurance.

He also facilitates access to GIFT City investments, Portfolio Management Services (PMS), and Alternative Investment Funds (AIFs).

He provides investment and insurance services to NRIs as well, helping them with their investment and financial planning needs.

Hometown: Karaikudi, Tamil Nadu.

With extensive experience in the investment industry, he has helped many investors work towards building substantial wealth and continues to guide investors in their long-term financial journey.

Services include: