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FY25 SIP Trends: Direct Plans Add Over 10 Lakh Long-Term Accounts, Growing 63% vs 11% in Regular Plans

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  • FY25 SIP Trends: Direct Plans Add Over 10 Lakh Long-Term Accounts, Growing 63% vs 11% in Regular Plans

In FY25, SIP accounts with over 5-year tenures grew 63% in direct plans with 10 lakh additions, compared to just 11% growth in regular plans.

Mutual fund investors in India can choose between two types of plans; direct and regular.

  • Direct plans are purchased directly from AMCs (Asset Management Companies) and offer lower expense ratios.
  • Regular plans are routed through intermediaries, such as distributors or advisors, and come with commission costs.

Systematic Investment Plans (SIPs) are widely used in both types, but new data for FY25 reveals an important trend shift in long-term SIP behaviour.

Read More: Direct vs Regular Mutual Fund: Know The Difference

Long-Term Direct Plan SIPs Witness 63% Surge in FY25

According to AMFI (Association of Mutual Funds in India), direct plan SIPs with a tenure exceeding five years rose from 16.5 lakh in FY24 to 26.8 lakh in FY25, a net addition of 10.3 lakh accounts, marking a 63% increase.

Direct Plan SIP Growth by Tenure:

SIP Tenure FY24 Accounts FY25 Accounts Net Addition % Growth
More than 5 years 16,52,926 26,87,103 10,34,177 63%
4 to 5 years 17,38,836 22,23,496 4,84,660 28%
3 to 4 years 23,49,861 37,64,203 14,14,342 60%
2 to 3 years 49,43,560 35,35,815 -14,07,745 -28%
1 to 2 years 50,55,057 63,58,318 13,03,261 26%
Less than 1 year 1,52,98,994 1,95,69,164 42,70,170 28%

The data signals a shift in mindset—investors in direct plans are not only increasing participation but also showing greater commitment to longer investment horizons.

Regular Plans: Modest 11% Growth in Long-Term SIPs

While regular plan SIPs remain popular, the growth rate for long-term accounts (over 5 years) was comparatively modest. In FY25, these accounts increased from 83.7 lakh to 92.5 lakh, a net gain of 8.8 lakh accounts, reflecting just 11% growth.

Regular Plan SIP Growth by Tenure:

SIP Tenure FY24 Accounts FY25 Accounts Net Addition % Growth
More than 5 years 83,71,793 92,51,246 8,79,453 11%
4 to 5 years 31,41,153 28,11,756 -3,29,397 -10%
3 to 4 years 30,10,471 55,77,256 25,66,785 85%
2 to 3 years 73,10,128 75,75,699 2,65,571 4%
1 to 2 years 99,55,814 1,27,92,982 28,37,168 28%
Less than 1 year 2,11,42,706 2,43,91,647 32,48,941 15%

Interestingly, the highest percentage growth in the regular plan segment occurred in the 3 to 4-year tenure, possibly reflecting SIPs that were initiated during the 2020 market lows now moving into mid-duration.

Key Takeaways: Investor Behaviour Is Shifting

  • Direct plans are closing the gap with regular plans in long-term SIPs, thanks to lower costs and rising investor awareness.
  • The net addition of SIPs with a tenure over five years was higher in direct plans (10.3 lakh) than in regular plans (8.8 lakh).
  • Short-term SIPs (less than 1 year) continue to dominate, indicating that fresh inflows are still a major driver of SIP expansion across both categories.

Conclusion

Although regular plans continue to hold the majority in volume, the stronger growth in long-term SIPs under direct plans hints at evolving investor preferences. Investors are not only becoming more informed but are also choosing cost-efficient structures with a long-term vision.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

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