Rising systematic investment plan (SIP) inflows are swelling mutual funds’ investible pools, but a crowded primary market is leaving them competing for a narrower set of large, high-conviction deals.
According to data from the Association of Mutual Funds in India (Amfi), SIP contributions hit a record ₹32,490 crore in September, while equity mutual fund inflows rose 30.6% month-on-month.
SIP inflows hit an all-time high of ₹32,297 crore in August as well. In FY26, SIP contributions rose 20.8% year-on-year to ₹3.50 trillion.
“Because of the market outlook, geopolitical instability, the war and other factors, a lot of investors held back cash for a while,” said Amit Ramchandani, CEO and head of investment banking, Motilal Oswal. "Many funds were sitting on large cash positions of 5-6%. Over the past four to six months, that cash has started to get deployed.
“All the larger funds have been aggressive and are deploying money in core sectors such as financial services, manufacturing and new-age IT. Bids of ₹1,500 crore to ₹2,000 crore are becoming common,” Ramchandani added,