Direct-plan SIPs gain AUM share despite a/c closures in first half of 2025

At the end of June 2025, direct plan SIP accounts had a total AUM of Rs 3.3 trillion, accounting for nearly 22 per cent of the total SIP AUM of Rs 15.3 trillion

While the share of direct plans in total systematic investment plan (SIP) accounts witnessed a marginal decline in the first half of 2025, their share in the assets under mana­gement (AUM) scaled new highs. At the end of June 2025, direct plan SIP accounts had a total AUM of ₹3.3 trillion, accounting for nearly 22 per cent of the total SIP AUM of ₹15.3 trillion.  The direct plan share was around 21 per cent at the start of 2025, having almost doubled over the last five years. This despite a decline in their share in total SIP accounts. In June 2025, 35.5 per cent of SIP accounts were in direct plans, compared to 38.8 per cent in December 2024. 

The number of SIP accounts, both on the direct and regular sides, shrank in the first four months of 2025 due to an equity market correction and a reconciliation exercise by the industry to remove inactive SIP accounts. 

  The surge in direct plan as well as overall SIP AUM, despite account closures, indic­ates that most of the closed accounts had low holdings, according to MF officials.  However, the decline in direct plan accounts has marginally dented their share in the SIP contri­bution. In June 2025, direct plan SIPs contributed ₹8,375 crore, accounting for 30.7 per cent of the total SIP inflows. The share was 31.3 per cent in December 2024.