Mutual fund investors holding onto their SIPs for longer, shows data

SIP assets held for over five years are rising across regular and direct plans as investors adopt long-term strategies and stay invested despite market volatility

Mutual fund (MF) investors are now holding onto 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 direct plan SIP assets belonged to accounts that were more than five 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 for regular plans and 4 per cent for direct plans, 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 across the top 30 cities (T-30) and the rest of the country (B-30). SIP AUM linked to T-30 accounts older than five years rose from 11 per cent to 30 per cent over the past five years. Similarly, in the case of B-30, it increased from 11 per cent to 29 per cent.

 

Overall, SIP accounts have seen a sharp increase 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 ₹2.89 trillion in inflows in the financial year 2025. The contribution stood at ₹1.99 trillion in the previous year.