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A striking pattern in India’s fast-expanding mutual fund landscape is worrying market observers. Even as systematic investment plans (SIPs) continue to attract record enrolments, industry data show that nearly 9 out of 10 retail investors discontinue their SIPs within the first three years, undermining long-term wealth creation.

Financial planners attribute this churn to a predictable cycle of emotion-driven decision-making. The initial year is marked by enthusiasm, with investors entering the market buoyed by optimism. By the second year, even a modest correction triggers anxiety, prompting many to pause or cancel their contributions. When markets rebound in the third year, these same investors return, often with a sense of missed opportunity. This loop of excite

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