A Study on the Factors Influencing SIP Discontinuation Among First-Time Mutual Fund Investors

This study investigates the behavioral, economic, and technological determinants of Systematic Investment Plan (SIP) discontinuation among first-time mutual fund investors in India. Using a cross-sectional sample of 152 investors, the research reveals that while SIPs are engineered for long-term wealth creation, a significant 52.6% of participants have either paused or permanently discontinued their investments. Findings highlight that loss aversion, personal financial emergencies, and the absence of human advisory support on digital platforms are primary catalysts for attrition. Statistical testing establishes a clear inverse relationship between financial literacy and discontinuation propensity, with beginners exiting at nearly double the rate of advanced investors. The study concludes that enhancing financial resilience through emergency funds and integrating behavioral nudges into digital platforms are critical for improving long-term investor retention.