Archive · 24 Aug 2026
Distributors Dominate Small-Ticket SIPs as Direct Investing Grows
A SIP is a way to invest a small amount of money regularly in mutual funds.
In March 2026, most SIP money below Rs 500 was invested through distributors.
Distributors often help people who are new to investing or have less financial knowledge.
Many investors making larger SIPs now use direct plans through digital platforms.
Direct plans can cost less and provide access to funds from different fund houses.
Experienced investors may also choose direct plans for new investments.
However, distributors can help investors stay invested during short-term market declines.
Experts believe both direct investing and distributor-led investing will continue to grow.
Regular-mode distributors accounted for 78% of SIP assets below Rs 500 in March 2026.
The distributor share in sub-Rs 500 SIP assets rose from 71% in March 2021.
Direct plans increased their share of SIP assets above Rs 10,000 from 13% to 22%.
Direct-mode share in the Rs 5,000–10,000 SIP range rose from 16% to 28%.
Experts expect both channels to grow, with distributors continuing to provide investor guidance.
- Who
- Mutual fund investors, distributors, fund houses and investment platforms are involved; the data was shared by the Association of Mutual Funds in India and CRISIL Intelligence.
- What
- Regular-mode distributors accounted for 78% of SIP assets below Rs 500, while direct investing gained share among larger SIPs.
- When
- The comparison covers March 2021 to March 2026, with the latest figures reported for March 2026.
- Where
- The data concerns India’s mutual fund market; one cited distributor is based in Chennai.
- Why
- Small-ticket investors often need guidance, while larger or more experienced investors are increasingly using digital platforms and direct plans.
Distributor Route
Direct Route
Who prefers the channel
Distributor Route
Distributors are commonly used by first-time investors and people with lower financial awareness, especially for very small SIPs.
Direct Route
Direct plans are increasingly preferred by young, digitally connected and experienced investors, particularly for larger SIPs.
Main advantage
Distributor Route
Distributors provide hand-holding and professional help, which may reduce premature redemptions during short-term market corrections.
Direct Route
Direct investing offers lower-cost access and lets investors view portfolios across fund houses on digital or AMC platforms.
Future role
Distributor Route
Experts expect distributors to remain relevant, with more serious or larger investors continuing to seek professional assistance.
Direct Route
Experts expect direct investing to keep expanding as awareness, digital access and fund-house engagement increase.
- Sub-Rs 500 SIPs
- Regular mode accounted for 78% of assets in March 2026.
- Five-year change
- The distributor share of sub-Rs 500 SIP assets rose from 71% in March 2021 to 78% in March 2026.
- SIPs above Rs 10,000
- Direct mode’s share increased from 13% in March 2021 to 22% in March 2026.
- Rs 5,000–10,000 SIPs
- Direct mode’s share rose from 16% to 28% over the same period.
- Investor profile
- Distributors said many sub-Rs 500 SIP investors are first-time investors from underprivileged sections.
- Professional guidance
- One distributor said investors often seek professional help when their corpus exceeds Rs 30–40 lakh.