PhonePe Mutual Funds has reported a fivefold increase in daily Systematic Investment Plan (SIP) transactions during the first half of 2026, driven largely by strong adoption in India’s smaller cities and growing participation from first-time investors. The company said daily SIP transactions grew nearly 5x between January and June 2026, highlighting increasing interest in micro-investing products that allow users to begin investing with as little as ₹10 per day.
The surge reflects a broader shift in India’s mutual fund industry, where digital investment platforms are expanding beyond metropolitan markets into Tier-2 and Tier-3 cities. According to PhonePe Mutual Funds, the product’s affordability and ease of use have encouraged younger investors and first-time savers to adopt disciplined investing habits through small daily contributions.
Daily SIP Transactions Grow Nearly Fivefold
PhonePe Mutual Funds said:
- Daily SIP transactions increased almost 5x between January and June 2026.
- The average daily investment amount is ₹50.
- More than 500,000 users are now investing through Daily SIPs.
- The feature allows investments starting from ₹10 per day.
Growth Snapshot
| Metric | Details |
|---|---|
| Growth in Daily SIP Transactions | Nearly 5x (Jan–Jun 2026) |
| Average Daily Investment | ₹50 |
| Minimum Daily SIP | ₹10 |
| Daily SIP User Base | Over 500,000 |
Smaller Cities Drive Adoption
One of the biggest growth drivers has been increasing participation from non-metro markets.
According to the company:
- 77% of Daily SIP customers come from Tier-2 and Tier-3 cities.
- Digital investing is becoming increasingly popular beyond India’s largest urban centres.
- Affordable investment sizes are helping expand mutual fund participation among new investors.
The trend mirrors the broader financial inclusion story in India, where digital payment infrastructure and smartphone adoption are enabling millions of users to access investment products for the first time.
Customer Profile
| Category | Share |
|---|---|
| Tier-2 & Tier-3 City Investors | 77% |
| Metro Investors | 23% |
Young Investors Lead the Trend
PhonePe said younger users account for a significant share of Daily SIP adoption.
Key findings include:
- Investors aged 18–29 years comprise around half of all Daily SIP users.
- Many are first-time mutual fund investors.
- Small-ticket investing is encouraging regular saving habits among younger consumers.
The company believes daily investing aligns well with the spending and income patterns of young professionals, students, and gig economy workers who prefer smaller, more frequent investments over larger monthly commitments.
Why Daily SIPs Are Gaining Popularity
Unlike traditional monthly SIPs, Daily SIPs allow investors to contribute a fixed amount every day.
Potential benefits include:
- Lower entry barrier with investments starting at ₹10.
- Greater investment discipline through daily contributions.
- Potential to average purchase costs over more market movements.
- Better accessibility for first-time investors with limited disposable income.
PhonePe launched the Daily SIP feature in late 2025 to make mutual fund investing more accessible and habit-based for retail investors.
Digital Wealth Platforms Expand Beyond Metro India
The strong growth also reflects increasing competition among fintech companies to expand wealth management offerings.
Platforms are increasingly focusing on:
- Low-ticket investment products.
- Simplified onboarding.
- Mobile-first investing experiences.
- Financial education for new investors.
- Regional language support.
Industry experts expect smaller cities to remain a major growth engine for India’s mutual fund industry as digital financial services continue to deepen their reach.
Looking Ahead
PhonePe Mutual Funds’ fivefold increase in Daily SIP transactions highlights the growing appeal of micro-investing among Indian retail investors, particularly in Tier-2 and Tier-3 cities. With investments starting at just ₹10 per day and an average daily contribution of ₹50, the platform is helping lower the barriers to mutual fund participation while encouraging disciplined investing among first-time and younger investors.
Looking ahead, continued expansion of digital financial services, rising financial literacy, and increasing smartphone penetration are expected to accelerate mutual fund adoption beyond metropolitan markets. As fintech platforms compete to attract new investors through affordable and user-friendly products, Daily SIPs could play an important role in broadening retail participation in India’s investment ecosystem.
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
