Now Reading: SEBI data: Regular fund investors stick longer than direct plan holders
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SEBI data: Regular fund investors stick longer than direct plan holders
SEBI data: Regular fund investors stick longer than direct plan holders
SEBI whole-time member Amarjeet Singh revealed that 34% of SIP assets in regular mutual fund plans have been held for over five years, compared to just 20% in direct plans. The data,…
The Story in Brief
SEBI whole-time member Amarjeet Singh revealed that 34% of SIP assets in regular mutual fund plans have been held for over five years, compared to just 20% in direct plans. The data, shared on August 13 at the NJ Partners Business Training 2026 event, shows that SIP assets now account for over 21% of the mutual fund industry's total assets under management.
Singh described distributors as a 'behavioural crutch' for investors, helping them avoid pulling out during market volatility. Regular plans involve distributors, while direct plans let investors buy fund units without an intermediary. The industry's AUM has reached about Rs 85 lakh crore, with over 6 crore unique investors.
The Indian Opinion
Direct vs regular is often framed as a pure cost debate, but the data reveals a behavioural divide that expense ratios alone cannot explain. The narrative that distributors are a deadweight cost ignores their role in keeping investors invested. A better test would be to track whether investors who switch from regular to direct plans maintain the same holding period or start churning.
Source: bazaar.businesstoday.in
This story was synthesised by AI from the source linked above.
