Kotak: SIPs hold up

Indian retail investors are still sending money into mutual funds through systematic investment plans even after weak returns and a sharp market correction in March 2026. (cnbctv18.com) Kotak Institutional Equities said gross SIP inflows kept rising and SIP account numbers stayed broadly stable in calendar 2026 so far. The firm also said investors added lump-sum money during market dips. (cnbctv18.com) The backdrop has been weak performance. Kotak’s analysis, cited by Moneycontrol, said the weighted-average net asset value of equity mutual funds fell about 14% from its September 2024 peak over July 2024 to March 2026. (moneycontrol.com) That slide has hit investors who started SIPs between 2022 and 2025, with many now seeing muted or negative extended internal rates of return, or XIRR, after the March 2026 selloff. Small-cap and sectoral or thematic funds have been under the most pressure. (moneycontrol.com) The industry data still shows money coming in. Association of Mutual Funds in India data for March 2026 showed monthly SIP inflows at a record Rs 32,087 crore, up from Rs 29,845 crore in February. (economictimes.indiatimes.com) March was also the 61st straight month of positive net inflows into equity funds, according to AMFI, and contributing SIP accounts stood at 9,71,85,691. SIP assets were Rs 15,10,942.99 crore, about 20.5% of total mutual fund assets. (economictimes.indiatimes.com) Kotak said equity mutual funds still drew about Rs 1.1 trillion of active inflows in the first quarter of calendar 2026 even as foreign portfolio investors sold roughly $19 billion of Indian equities. The report said domestic flows have helped absorb part of that selling. (cnbctv18.com) The mix of money is changing as returns cool. Kotak said investors have been shifting more toward passive funds, flexi-cap funds and multi-asset products, while direct equity participation showed signs of fatigue in fiscal 2026. (cnbctv18.com) AMFI’s March 2026 data also showed the industry’s net assets under management at Rs 73.73 lakh crore, down from Rs 82.03 lakh crore in February, a drop that coincided with the market selloff even as retail SIP contributions hit a new high. (amfiindia.com, economictimes.indiatimes.com) For now, the pattern is simple: returns have weakened, foreign investors have been selling, and Indian households are still committing fresh money every month. (cnbctv18.com, moneycontrol.com)