Returns Were There. Resolve Wasn’t Always
Ratin Biswass / 24 Dec 2025 / Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, MF - Editorial, Mutual Fund
If one had to describe 2025 for Indian mutual fund investors in a single phrase
If one had to describe 2025 for Indian Mutual Fund investors in a single phrase, it would be this: returns were selective, conviction was scarce.[EasyDNNnews:PaidContentStart]
On paper, the year looked comfortable. SIP inflows stayed robust, monthly contributions hovered near record levels, and equity markets refused to crack despite frequent global and domestic anxieties. Large-Cap funds delivered steady gains, value strategies found their footing, and select sectoral funds, particularly Banking and auto, outperformed decisively. Even international funds surprised many with strong double-digit returns.
But investing is never just about numbers. It is about behaviour, and here, 2025 revealed its true character. While new SIP registrations remained healthy, discontinuations quietly kept pace. Between April and November, nearly as many SIPs were stopped or completed as were newly started. Outstanding SIP accounts crossed a milestone, but contributing accounts largely plateaued. Investors did not panic; they hesitated. In a year where returns arrived in spurts rather than smoothly, hesitation carried a cost.
The divergence in category performance made staying invested emotionally harder. Small-Cap and technology funds corrected even as banking and auto rallied. Pharma disappointed when safety was expected. Infrastructure and business cycle themes promised much but delivered little. This unevenness tempted investors to reshuffle portfolios mid-year, often after trends had already played out.
What 2025 reminded us, quietly but firmly, is that mutual fund investing does not reward constant motion. It rewards endurance. SIPs worked, but only for those who let them work. Asset allocation mattered more than chasing categories. Time in the market once again proved more valuable than clever timing.
As the year draws to a close, the lesson is not about which fund topped the charts. It is about how investors behaved when the charts stopped moving in a straight line.
Shashikant Singh
Executive Editor
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