One-third of direct SIP assets less than one-year old, say experts

Mutual funds garnered Rs 8,022 crore of its assets by way of SIPs in December 2018, 29 per cent higher than the previous year | Illustration: Binay Sinha
The holding period for investors putting money in systematic investment plans (SIPs) through direct plans has remained on the lower side, compared to those investing through regular plans. For direct plans, the share of assets held for less than one year is around one-third of the total direct plan assets. In contrast, the share of SIP investments held for less than one year is 26 per cent, in the case of regular plans. This means 74 per cent of assets are held for over one year. Experts say the do-it-yourself investors, who opt for direct plans, are prone to churning their investments amid market volatility. “Those coming through distributors have managed to stay longer, as the advisors hand-hold these investors through market cycles,” said a fund manager.

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