24/08/2026
SIPs Are Growing, But Are They Really Supporting the Stock Market?
India’s investment pattern is changing.
Individual traders in the equity derivatives market fell from 98.1 lakh in FY25 to 78.6 lakh in FY26. First-time traders also dropped by about 40%.
At the same time, SIP investing continued to grow. Monthly SIP contributions reached a record ₹32,087 crore in March 2026, with around 9.7 crore SIP accounts by FY2025-26.
This raises an important question: Are SIPs becoming a support or “floor” for the stock market?
To find out, 10 years of SIP data from April 2016 to July 2026 was compared with Nifty 50 returns.
What did the data show?
- SIP contributions reached new records in 74 of 123 months.
- The Nifty fell in 43% of record-SIP months, compared with 41% of other months.
- During major market declines, SIP contributions continued to increase.
- Out of 52 months when the Nifty fell, SIP contributions were higher than the previous month in 33 months.
- A year after falling record-SIP months, the Nifty was higher in about 93% of completed cases. But the same was true for falling months generally.
So, do SIPs prevent market crashes?
No.
SIP money does not go directly into the Nifty 50. It is spread across different types of mutual funds, and mutual funds also face redemptions and other cash-flow changes.
Also, SIP contributions come into the market throughout the month. Strong selling can still push stock prices down.
The real strength of SIPs
SIPs may not stop the market from falling, but they help investors continue investing during market declines.
Instead of trying to predict the best time to buy, investors keep investing regularly through both good and bad markets.
The key takeaway: SIPs are not a guaranteed floor for the stock market. Their bigger benefit is helping investors stay invested and disciplined during market ups and downs.