Mutual fund investors are now holding on their systematic investment plan (SIP) investments for longer compared to five years ago.
A recent report shows that as of March 2025, 33 per cent of regular plan SIP assets and 19 per cent of the direct plan SIP assets belonged to accounts that were more than 5 years old.
In comparison, five years ago the proportion of SIP assets under management (AUM) linked to such older accounts was only 12 per cent in the case of regular plan and 4 per cent for direct plan, according to a report by the Association of Mutual Funds in India (Amfi).
"This trend suggests that investors are embracing disciplined, long-term investing, becoming more patient and less prone to impulsive decisions based on market fluctuations. As the MF industry evolves, this trend is likely to continue, with investors prioritising long-term returns over short-term gains," the report said.
The SIP holding period trend is similar for the top 30 cities (T-30) and the rest of the country (B-30). SIP AUM linked to T-30 accounts older than 5 years went up from 11 per cent to 30 per cent in the past five years. Similarly, it went up from 11 per cent to 29 per cent in the case of B-30.Overall, SIP accounts have seen a sharp jump in recent years.
As of March 2025, there were 81.1 million contributing SIP accounts compared to 63.8 million in April 2024. SIPs brought in Rs 2.89 trillion inflows in the financial year 2025. The contribution stood at Rs 1.99 trillion in the previous year.
Abhishek Kumar/Business Standard
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