In FY25, SIP accounts with over five-year tenures rose 63% in direct plans, compared to just 11% in regular plans, signalling a shift in investor maturity.
There is a general notion that market participants are always chasing overnight success in the stock market. While that may or may not hold true across the board, a recent observation regarding SIP investors offers a refreshing counterpoint.
According to data compiled by Cafemutual, Systematic Investment Plans (SIPs) with a tenure of more than five years have seen a substantial increase in direct mutual fund plans, suggesting that a large segment of investors are indeed playing the long game.
Direct plans—where investors bypass intermediaries and invest directly through fund houses or platforms—recorded a 63% growth in SIP accounts with tenures exceeding five years in FY25. These accounts rose from 16.5 lakh in FY24 to 26.9 lakh in FY25, with over 10 lakh new accounts added.
Here’s a breakdown of the growth across various SIP durations in direct plans:
| SIP Duration | FY24 SIP Accounts | FY25 SIP 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% |
Despite the decline in the 2–3-year category, longer tenures—especially those over five years—saw significant traction, reflecting the patience and discipline of self-directed investors.
Regular plans, which involve investment through intermediaries or distributors, showed a more subdued 11% increase in SIPs with more than five years of tenure—from 83.7 lakh in FY24 to 92.5 lakh in FY25. That marks a net addition of 8.8 lakh accounts, which although sizeable, lags behind the direct plan trend.
Below is the performance of regular plans across SIP tenures:
| SIP Duration | FY24 SIP Accounts | FY25 SIP 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% |
Though still dominant in absolute numbers, the incremental growth in long-term SIPs under regular plans is relatively modest.
The stark contrast between direct and regular plans when it comes to long-term SIP growth highlights a noteworthy trend. Investors in direct plans—often more aware of costs and more engaged in the investment process—are increasingly choosing to stay invested for the long haul.
This could reflect a broader maturation of investor behaviour, particularly among those who opt for digital or self-managed platforms. Instead of chasing quick wins, these investors are showing a willingness to endure market cycles and remain consistent in their contributions.
While the notion of quick success continues to dominate popular sentiment, actual investment data suggests otherwise—at least when it comes to SIPs. The 63% jump in more-than-5-year SIPs in direct plans indicates that a growing group of investors are choosing discipline over drama.
Meanwhile, regular plan investors—despite the presence of advisory support—are increasing their long-term SIPs at a far slower rate, pointing to a gradual but less aggressive adoption of long-term thinking.
Disclaimer: The article is for informational purposes only and not investment advice.
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