Now Reading: Small SIP accounts fall by 1.4 million, larger ones grow
-
01
Small SIP accounts fall by 1.4 million, larger ones grow
Systematic investment plan (SIP) accounts with monthly contributions of Rs 1,000 or less fell by 1.4 million in the financial year 2025-26, even as higher-ticket accounts continued to grow, data from the…
Systematic investment plan (SIP) accounts with monthly contributions of Rs 1,000 or less fell by 1.4 million in the financial year 2025-26, even as higher-ticket accounts continued to grow, data from the Securities and Exchange Board of India (Sebi) shows. Times Now reports the decline was led by the Rs 501 to Rs 1,000 category, which lost 13.86 lakh folios, while accounts in all higher slabs grew, with the over-Rs 10,000 bracket expanding 5.9 per cent to 3 million.
The data also shows that smaller cities (B-30) added more new SIPs but also saw more premature terminations than top-30 cities. Livemint's analysis, however, questions the celebration of record aggregate SIP flows, noting that the headline figure masks the exit of small savers. The piece argues that small accounts are often opened on the back of recent returns but are abandoned during volatility as there is no incentive for the industry to retain them.
The article suggests that the persistence of small accounts needs to be made worth someone's while, or the small SIP will remain a slogan rather than a real tool for inclusion.
Indian Opinion Analysis
Times Now leads with the Sebi data showing a drop in small-ticket SIPs and growth in larger slabs, a neutral-report framing that lets the numbers speak. Livemint goes further, calling the headline record 'a strange kind of success' and arguing that the industry has no incentive to retain small accounts. This difference matters: the official data is the same, but Livemint's analysis highlights that the small saver's exit changes what the aggregate means. A careful reader should note that the decline in the smallest folios is real, but the graduation argument, that some moved to higher slabs, cannot fully explain it, as the next slab grew only 0.5 per cent. The key question to watch is whether the mutual fund industry will introduce any mechanism to retain small accounts, or if the trend continues.
Coverage: 2 sources, 1 government-critical, 1 neutral
Sources (2): timesnownews.com (neutral report), livemint.com (government critical)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
