In May last year, SIP collection stood at Rs 8,183 crore.
The inflow in May 2020 was the lowest since June 2019, when investment through SIP route stood at Rs 8,122 crore.
Inflows into equity mutual funds, which mainly depend on SIP, also declined to a five-month low of Rs 5,256 crore in May, the data showed.
Market experts attributed the lower inflows via SIP to market volatility
and uncertain economic environment due to the coronavirus pandemic.
They said SIP still continues to be the preferred route for retail investors to invest in mutual funds
as it helps them reduce market timing risk.
Currently, mutual funds have 3.2 crore SIP accounts through which investors regularly invest in Indian mutual fund schemes.
Investment through SIPs have been rising for the last few years.
SIP investment stood at over Rs 1 lakh crore in 2019-20, almost Rs 92,700 crore in 2018-19, over Rs 67,000 crore in 2017-18 and over Rs 43,900 crore in 2016-17.
Harsh Jain, co-founder of Groww, said that Indian SIP investors are showing immense resilience amidst the ups and downs in market.
Clearly, SIP as a medium has gained immense popularity, he said.
SIP is an investment plan offered by mutual funds, wherein one can invest a fixed amount in a mutual fund scheme periodically at fixed intervals, once a month, instead of making a lump sum investment.
It is similar to a recurring deposit where an investor deposits a fixed amount every month.