Monthly systematic investment plan (SIP) account additions surged to a six month high of 1.3 million in August, as the sharp rebo­und in the broader market has provided fresh momentum to the mutual funds’ (MF) retail expansion. 

The total number of active SIP accounts surged to a new high of 107.5 million at the end of August, with the industry witnessing a rise in net SIP account additions in each of the past four months. The growth momentum in SIP registrations also took the contributing tally and gross inflows to new highs during the month. 

MFs recorded investments from 100.2 million SIP accounts, the highest number since the industry started disclosing the data in 2024. 

Contributing SIP accounts excludes folios that paused their investments for the month. SIP accounts are declared inactive if the transactions fail to go through three consecutive times. 

The SIP contributions also surged to a new high of ₹32,297 crore in August. 

The renewed growth momentum in SIPs comes as returns of smallcap and midcap funds have risen back to attractive levels across time frames. The average one-year returns of smallcap and midcap funds currently stand at 12.8 per cent and 7.8 per cent, respectively, according to Value Research data. The two fund categories attract the bulk of the SIP inflows, as evident from a recent Amfi report, which showed that SIP-linked assets of smallcap funds grew the fastest in the last five years ending March 2026.