PhonePe Mutual Funds: 5X SIP Growth, 500K Investors

PhonePe Mutual Funds reported a significant five-fold increase in its Daily SIP transactions between January and June 2026. This substantial growth follows the product’s introduction in December 2025, successfully attracting over 500,000 unique investors.

Adoption Metrics

The platform’s Daily SIP transactions surged by 5X during the first half of 2026. This rapid expansion reflects the onboarding of more than 500,000 unique investors in just six months since its launch.

A notable 77% of these new customers originate from India’s Tier-2 and Tier-3 cities, indicating broad penetration beyond major metropolitan areas. Additionally, younger demographics are prominent, with 58% of investors aged 18-29 and another 37% falling into the 30-45 age bracket.

Investment Details

The Daily SIP feature facilitates micro-investments, allowing users to start with as little as Rs 10 per day. This approach encourages consistent, habit-based investing, with the platform observing an average investment size of Rs 50.

Target Demographic & Flexibility

This investment product has found strong resonance among specific segments, including merchants, shop owners, and self-employed individuals. Their income streams are often daily rather than monthly, making the Daily SIP model particularly suitable for their cash-flow patterns.

The system also offers considerable flexibility, notably allowing investors to stop their contributions without incurring any penalties. This feature, combined with the ability to average purchase costs, helps mitigate exposure to short-term market volatility.

Such accessibility and adaptability contribute to increasing participation from first-time investors and early earners. It signifies a broader engagement with India’s financial markets through a user-friendly, low-barrier entry point.