A new analysis by Cafe Mutual highlights growing investor discipline in India’s mutual fund industry. As of September 2025, the total Systematic Investment Plan (SIP) Assets Under Management (AUM) stood at ₹15.52 lakh crore, with ₹4.73 lakh crore — over 30% — invested for more than five years.

In comparison, about 22% of total SIP AUM (₹3.41 lakh crore) represents investments that are less than one year old, indicating the continued inflow of new investors into the market.

Direct vs Regular Plans: A Clear Divide

The study reveals a notable difference in investor behaviour between direct and regular SIP plans:

• Direct Plans: Only 19% of SIP AUM has been active for more than five years, while nearly 30% has been invested for less than one year.

• Regular Plans: Around 34% of SIP AUM has been active for over five years, and just 20% is less than one year old.

This clearly indicates that investors in regular plans often guided by financial advisors or distributors—tend to stay invested for the long term, while direct investors are more prone to shorter investment periods.

What It Means for Investors

The findings underline several key takeaways for both investors and advisors:

1. Rising Investment Discipline: The high share of long-term SIP assets reflects growing investor maturity and trust in long-term wealth creation.

2. Advisor Value: Regular plan investors, supported by advisors, are more likely to stay invested through market fluctuations.

3. Investor Education: New SIP investors must focus on consistency and time in the market to maximize compounding benefits.

4. Behavioural Edge: Investment success depends more on investor behaviour and less on short-term market movements.

Broader Market Insights

While the overall trend is encouraging, some areas need attention:

• Short-Term SIPs: A large number of new SIPs (<1 year) means investor retention will be crucial in the coming years.

• Volatility Risks: New investors may be tempted to stop SIPs during market downturns, which can hinder wealth creation.

• Advisory Support: The longer tenure of regular plan SIPs reinforces the importance of guided investing.

Over 30% of SIP AUM in India has been active for more than five years, reflecting a strong sense of investment discipline among mutual fund investors. Regular plans have clearly outperformed direct plans in terms of investor retention and long-term commitment, underscoring the value of advisor-led guidance. This trend highlights the growing maturity and confidence of Indian investors in the mutual fund ecosystem. Going forward, continued efforts toward financial literacy and consistent advisory support will play a crucial role in sustaining long-term participation and helping investors stay invested through market cycles.

Source: Cafe Mutual