SIP Accounts Drop: 1.4M Less Under ₹1000 in FY26
By Market Desk
Discover why 1.4 million small-ticket SIP accounts (under ₹1,000) declined in FY26, reversing growth. Understand the impact of market volatility on new investors.
If you’ve been investing in mutual funds with smaller amounts, you might be interested to know that accounts with monthly Systematic Investment Plan (SIP) contributions up to ₹1,000 actually decreased by 1.4 million in Fiscal Year 2026.
This marks a significant change, reversing two years of strong growth for these small-ticket SIPs.
What Caused the Shift?
Industry experts point to a few key reasons for this downturn, especially for first-time investors.
Many new investors were drawn in by the strong market rallies of 2023 and 2024, hoping for quick returns.
A significant number used direct investment applications without professional financial advice or distributor support.
When the market became more volatile, these investors, often with limited financial understanding, found it tough to keep their investments going.
For example, the Nifty 50 index stayed below its September 2024 peak, even as smallcap and midcap stocks recently hit new highs.
Investors making smaller monthly contributions often show higher churn rates, meaning new accounts open during rallies and close during corrections.
Key Numbers: Small-Ticket SIP Decline
Here’s a quick look at the impact on small SIPs:
• Small-ticket SIP accounts (up to ₹1,000/month) dropped by 1.4 million in FY26.
• This segment had grown by 37% and 16% in the two years prior, according to Securities and Exchange Board of India (SEBI) data.
What About Larger Investments?
Interestingly, while smaller SIPs declined, higher-value SIP accounts continued to grow, though at a slightly slower pace.
This suggests a different trend among investors with larger contributions.
• Accounts with monthly investments of ₹1,001-3,000 increased by 0.5%, reaching 33.5 million.
• The ₹3,001-5,000 category grew by 2.8% to 14.4 million accounts.
• SIPs contributing ₹5,001-10,000 saw a 5% rise, hitting 6.2 million.
• The largest SIPs, exceeding ₹10,000, increased by 5.9% to 3 million accounts.
What This Means for Your Investing Journey
This trend doesn’t necessarily mean people are completely leaving mutual funds. It could indicate that some investors are increasing their monthly contributions as their incomes grow, or they might be combining multiple smaller SIPs into larger ones.
It’s also possible some investors simply stopped SIPs started without clear financial goals during the previous market boom.