New entrants eat into SIP inflows of listed Mutual funds

The inflows through systematic investment plan of leading listed mutual funds have taken a hit in the last three quarter as the new entrants eat into their market share.

The monthly SIP inflows of ICICI Prudential AMC peaked to ₹5,104 crore in March quarter and dipped to ₹4,872 crore in June quarter and further to ₹4,672 crore in September quarter.

Similarly, other leading fund houses such as HDFC AMC, SBI Funds Management and UTI AMC also registered a fall in SIP inflows.

Yudhajit Baul, founder, Yudhajit Financial Services said growth in SIPs of schemes managed by listed AMCs have slowed down because of entry of new players in the market , smaller AMCs have taken some market share from their listed counterparts which is good for the industry.

“The reason for the growth is incentives offered through distribution network and of course investors would also like to experiment with new fund managers sometimes,” he said.

Many new investors preferred to start SIP in small- and mid-cap funds that were recently launched as it was available at a lower NAV compared to legacy funds, said a leading distributor.

Rajesh Singla, CEO and Fund Manager Alpha AMC said the share of SIP is shifting towards smaller and specialised houses with the market share of top 10 AMCs dipped from 83 per cent in March 2021 to 76 per cent in March 2026 as the number of AMCs rose from 43 to 51 between March 2022 and March 2026.

“Investors are chasing performance in mid-cap, small-cap, and flexi-cap. Mid-cap funds overtook large-cap as the biggest SIP category in March,” he added.

Other income hit

All the seven leading listed fund houses have reported a drop of 7-94 per cent in other income with Aditya Birla Sun Life AMC registering the lowest fall of 7 per cent while UTI MF recorded highest drop of 94 per cent.

Other income in mutual fund business include revenue from non-core business such earnings from investments, dividends, gain/loss on investments among others.

Most of the AMC stocks have tanked in the last few days with flattish SIP inflows and growing uncertainty on MDR implementation.

Nikunj Saraf, CEO at Choice Wealth said the debt MTM hit has been real with the 10-year G-Sec rose by about 42 bps in September quarter.

With the RBI raising the repo rate to 5.50 per cent and 10-year yield touching 7.40 per cent by mid-October, Q3 FY’27 treasury income is likely to stay subdued unless yields soften by December, he added.

Shweta Rajani, Head - Mutual fund, Anand Rathi Wealth said the revised MDR framework imposes a charge of just 0.02 per cent on eligible lump sum mutual fund payments made through UPI, subject to a maximum of ₹300 per transaction. For example, on a lump sum investment of ₹1 lakh, the MDR would be only ₹20.

The actual cost borne by an AMC will depend on its payment processing arrangements, and not all lump sum investments are made through UPI, she said.

Published on November 4, 2026