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Jab Life Maange More, Badho Mutual Funds Ki Ore.
Ab SIP se, Sara Desh Kare Nivesh.

In a world of endless possibilities, our dreams often outpace our means. But with the power of SIP, a method of investing in mutual funds, you could bridge the gap between your aspirations and reality. Let regular investments be the wind beneath your wings, propelling you towards your financial goals.

Whether you envision a lavish wedding, a world-class education, or the freedom to pursue your entrepreneurial dreams, investing in mutual funds through SIPs could help you achieve them.

Join the millions of Indians who aim to transform their financial landscapes with SIPs in mutual funds. Together, let us embody the spirit of "Ab SIP se, Sara Desh Kare Nivesh," empowering ourselves and our nation to achieve dreams that once seemed out of reach.

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Mutual Fund Investment 101

Get an overview of the basics and get started on your first mutual fund investment.

Children's Fund vs. Investing in Your Own Name: A Practical Guide for Parents

Every parent dreams of securing their child’s future — whether it’s funding education, supporting a passion, or providing financial stability as they start their adult lives. Achieving these goals often begins with consistent and thoughtful future planning.

Among the many investment options available, parents commonly weigh two paths: investing in a children’s mutual fund on behalf of their kids through a minor account or investing in their own name while earmarking the funds for the child. Both are valid strategies but differ in flexibility, control, and taxation.

This guide explains how each works, how they compare, and how you can choose an approach that fits your family’s financial plan.

What are Children’s Mutual Funds and How Do They Work?

A children’s mutual fund scheme is a type of open-ended solution-oriented mutual fund designed to help parents or guardians plan for a child’s long-term financial goals such as education, career development, or marriage. These funds aim to build disciplined savings habits by investing in a mix of equity and debt instruments to balance potential growth with relative stability.

Children’s mutual funds have a lock-in period of five years or until the child reaches 18 years of age (whichever comes earlier). Investments in a minor’s name can be made by a KYC-compliant guardian, (either a parent or legal guardian appointed by the court) with supporting relationship and age-proof documents. The investment contribution can be made from a bank account held in the name of the minor, the parent/guardian, or a joint account held by the minor with the parent/guardian.

3 simple steps to become a KYC compliant investor.

Investor Awareness Program

Tata Mutual Fund, in accordance with guidelines of the Association of Mutual Funds of India (AMFI), is pleased to present a series of investor training programs in your area.

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Pros and Cons of Investing in a Children’s Fund

Help parents earmark savings exclusively for a child’s future planning goals, such as higher education or marriage.
Encourage financial awareness in children by introducing them to saving and investing early.
Build emotional discipline, motivating parents to stay invested and avoid withdrawals post the lock-in period.
Tax liability applies to the parent until the child turns 18 and then shifts to the child, who may have little or no other income.

Require additional documentation, including proof of age, relationship, and guardian KYC.
Come with a five-year lock-in period, limiting access to funds in the short term.
Need minor-to-major conversion at 18 and delays in doing so can freeze the account.
Once the child attains majority, they gain control of the investment and may require support in handling it prudently.

How Does Investing in Your Own Name Work?

Instead of using a children’s mutual fund, many parents choose to invest in their own name and simply earmark that investment for the child’s goals. This approach can include SIPs in various equity, debt, and hybrid mutual fund schemes. In this scenario, the parent has flexibility - deciding when to redeem, rebalance, or change the fund mix without having to wait for the lock-in period to get over.

This flexibility is valuable when family priorities evolve or when you prefer to make tactical adjustments. However, it requires discipline because without a formal lock-in, it’s easy to repurpose the funds for other short-term needs. In this approach, all tax liabilities stay with the parent, even after the child turns 18. Yet, many parents prefer this simplicity and the ease of online investing in their own name.

Pros and Cons of Investing in Your Own Name

Provides complete control over investment decisions and redemption timelines.
Offers full liquidity, allowing access to funds whenever needed.
Keeps documentation and taxation simple, avoiding minor-to-major transfer processes.
Enables portfolio flexibility, allowing investment across different types of mutual funds schemes.

Requires self-discipline to keep funds reserved for the child’s goals.
May lack the psychological motivation that comes with investing directly in the child’s name.
Retains tax liability entirely with the parent throughout the investment period, which may become high if the parent invests in debt-oriented funds and falls under a higher bracket.
May cause goal overlap if child-focused investments mix with other financial priorities.

Child Mutual Funds Vs. Investing in Own Name: Comparing the Two Approaches

A) Ownership and Control

In a children’s mutual fund, the investment legally belongs to the child, though a parent or guardian manages it until they reach adulthood. Here, the actual ownership lies with the minor, with their parent/guardian acting as a custodian. Once the child turns 18, full control passes to them.

When you invest in your own name, you hold ownership and can decide when and how to use the corpus. This flexibility benefits parents who want to retain control and make adjustments to their investments as their needs evolve. However, it also places the onus of discipline on the parent.

Investing in a children’s mutual fund means parental management and eventual transfer of control to the child once they reach major status.
Investing in your own name means continuous personal control, but requires self-imposed restraint to avoid repurposing of the fund for short-term needs.

B) Investment Objective

A children’s fund is inherently goal-oriented. It’s structured to encourage parents to stay invested for specific milestones of the child like education or marriage. Because the investment is linked to a defined objective, it tends to promote long-term thinking.

Investing in your own name, meanwhile, offers flexible allocation. You can pursue multiple goals like retirement, buying a house, and saving for your child’s education simultaneously, through one consolidated portfolio. This gives broader financial control but may blur the boundaries between objectives if not carefully tracked.

Parents who prefer clear, goal-linked planning often find the structure of a children’s mutual fund helpful. Those comfortable with tracking and managing their own asset allocation may prefer the versatility of investing in their own name.

C) Taxation Aspects

Children’s Mutual Fund: Until the child turns 18, income or capital gains are clubbed with the parent’s income and taxed accordingly. Once the child becomes an adult, ownership and tax responsibility transfer to them. Since young adults often have little or no other income, the effective tax burden on realised gains may be lower (depending on prevailing tax rules at the time).
Investing in Your Own Name: Here, all realised gains are taxed in the parent’s hands throughout. Short-term capital gains on equity funds are taxed at 20%, while long-term gains attract a 12.5% tax with an exemption limit of ₹1.25 Lakhs. Gains from debt funds are added to the parent’s tax slab and taxed accordingly. In short, there’s no transfer of ownership or tax liability.

In both cases, investors should maintain proper documentation and consult a tax professional for clarity.

D) Liquidity and Access

Redemptions in children’s mutual funds is only permitted after the end of the 5-year lock-in period or once the child reaches adulthood (whichever happens first). This makes them suitable for parents who have enough liquidity and wish to ring-fence funds for a future milestone and avoid early withdrawals.

When you invest in your own name, the money remains fully accessible. You can redeem your investment partially or fully at any time, which offers convenience in emergencies. However, this also increases the chance of disrupting long-term goals if discipline slips.

In essence, children’s funds encourage commitment through structural discipline; self-managed portfolios offer freedom — but demand consistency.

How to Choose Between the Two?

Here are a few things you can consider when choosing the right approach for your child’s future planning:

Assess your comfort with control: If you value full control and instant access to your investments, holding them in your own name may be more practical. On the other hand, parents who prefer the structure and commitment of a goal-linked investment may find a children’s fund more suitable.
Evaluate liquidity needs: Consider whether you may need access to funds in the next 5 years or before your child turns eighteen. If flexibility and liquidity are priorities, investing in your own name may be a better option since it allows easier redemptions when required.
Consider tax and administrative ease: Investing in your own name keeps processes simple because it includes a standard KYC, single ownership, and straightforward taxation rules. To invest in a children’s mutual funds, you will need to open a minor account which requires extra documentation. At a later stage, you also have to undertake ownership transfer when your child attains major status which may seem like extra hassle to many investors.

Some parents also choose a combined approach. They invest a core portion in a children’s mutual fund for long-term goals like education, while maintaining an additional allocation in a savings mutual fund or equity saving scheme in their own name for flexibility. This balance allows them to stay disciplined toward the child’s objectives while retaining access to funds for unforeseen needs.

Whether you invest in a children’s mutual fund or in your own name, the ultimate goal remains the same: focusing on your child’s future planning and securing their education and other needs through planned, consistent investing.

A children’s mutual fund brings structure, purpose, and discipline to long-term investing, while investing in your own name offers flexibility, simplicity, and ease of access. Many parents may also find that combining the two approaches works better. The most important step is to start early, invest regularly, and review your portfolio periodically to ensure it stays aligned with your child’s evolving goals and your overall financial plan.

An Investor Education and Awareness Initiative by Tata Mutual Fund.
To know more about KYC documentation requirements and procedure for change of address, phone number, bank details, etc., please visit: https://www.tatamutualfund.com/deshkarenivesh
Please deal only with registered Mutual Funds, details of which can be verified on the SEBI website under ‘Intermediaries / Market infrastructure institutions.’
All complaints regarding Tata Mutual Fund may be directed to service@tataamc.com and/or https://scores.sebi.gov.in/ (SEBI SCORES portal) and/or https://smartodr.in/login
Nomination is advisable for all folios opened by an individual, especially with sole holding, as it facilitates an easy transmission process.
This communication is a part of the investor education and awareness initiative of Tata Mutual Fund.

Specialized Investment Funds (SIFs): An Investor’s Guide for India

The investment landscape keeps evolving. To meet the growing demand for flexible and strategy-driven products, SEBI introduced a new mutual fund category, Specialized Investment Funds (SIFs), which came into effect on April 1, 2025.

SIFs are designed to bridge the gap between traditional mutual funds and Portfolio Management Services (PMS). They allow investors to explore advanced investment strategies while staying within SEBI’s regulatory framework.

This blog explains what SIFs are, how they work, and what investors should know before investing.

What are Specialized Investment Funds (SIFs) and How Do They Work?

Specialized Investment Funds are SEBI-regulated Investment strategy that can adopt strategy-specific investment approaches such as long-short equity, sector rotation, and tactical asset allocation.

Unlike traditional mutual funds that generally follow a long-only approach, SIFs can take both long and short positions in securities. They may also use derivatives for hedging or tactical purposes and dynamically adjust allocations across equity, debt, and other asset classes.

Depending on the scheme, SIFs can be structured as open-ended or interval funds, each with its own liquidity terms. Asset Management Companies (AMCs) managing SIFs are governed by SEBI’s mutual fund regulations along with additional provisions applicable to this category.

In simple terms, SIFs offer investors a regulated way to participate in professionally managed, strategy-driven investing.

Who Can Invest in SIFs?

Investors need a minimum investment of ₹10 lakh (aggregated across all investment strategies of SIF under a single AMC at the PAN level) to participate. This ensures that investors have the financial capacity to engage with relatively sophisticated strategies that may have lower liquidity.

Accredited investors, as defined by SEBI, may be exempt from this minimum threshold. AMCs offering SIF strategies may also provide Systematic Investment Plans (SIPs), Systematic Withdrawal Plans (SWPs), and Systematic Transfer Plans (STPs), provided that the investor's overall commitment meets the minimum investment threshold.

Investment Strategies in SIFs

SIFs can follow different investment strategies based on their structure and objectives. Broadly, these fall under three categories: Equity-Oriented, Debt-Oriented, and Hybrid Strategies.

Equity-Oriented Strategies

These funds primarily invest in equities and equity-related instruments. They can take long and short positions (up to 25% via unhedged derivatives). Within this category, several strategies are recognized:

Equity Long-Short Funds: Holding a minimum of 80% in equity and equity related instruments, these funds aim to capture both upward and downward market movements using long and limited short equity positions.
Equity Ex Top 100 Long-Short Funds: With minimum investment of 65% in equity and equity related instruments in stocks outside the top 100 by market cap, targeting pricing inefficiencies in mid and small-cap segments.
Sector Rotation Long-Short Funds: Investing in equity and equity related instruments of maximum four sectors with a minimum of 80% allocation, these funds can tactically adjust sector weightings, including limited short positions at the sector level.

Debt-Oriented Strategies

Debt-oriented SIFs invest in fixed-income instruments with potential short exposures in debt derivatives. Strategies include:

Debt Long-Short Funds: Investing across various duration debt instruments with up to 25% unhedged short exposure, through exchange traded debt derivative instruments.
Sectoral Debt Long-Short Funds: Allocating to at least two sectors in debt markets with maximum investment of 75% in a single sector, these funds aim to control concentrations including unhedged short exposure limits of up to 25%.

Hybrid Strategies

These combine different asset classes, allowing dynamic asset allocation and shorting within the prescribed risk limits, with a maximum short exposure through unhedged derivative positions in equity and debt instruments of 25%:

Active Asset Allocator Long-Short Funds: Offering broad flexibility to rebalance dynamically across several asset classes such as Equity, debt, equity and debt derivatives, REITs/InVITs and commodity derivatives based on market conditions,
Hybrid Long-Short Funds: Maintaining at least 25% each in equity and debt instruments with tactical short positioning and rebalancing, typically structured as interval funds.

Liquidity and Redemption

Liquidity in SIFs varies depending on the fund’s structure and strategy. Some may offer daily redemption like regular mutual funds, while others may allow withdrawals at fixed intervals such as weekly, monthly, or quarterly.

Redemption periods may also require advance notice of up to 15 working days. Investors should review the liquidity terms carefully to ensure they align with their investment horizon and capital requirements.

Benefits and Risks of Investing in SIFs

Like any market-linked investment, SIFs present both potential opportunities and risks. Understanding them helps investors make confident, informed decisions.

Potential Benefits

Access to advanced investment strategies not typically available in traditional mutual funds.
Ability to undertake both long and short positions, which may provide diversification and hedging opportunities.
Broad diversification possibilities across equity, debt, alternatives, and derivatives.

Risks to Consider

Higher minimum investment thresholds restrict access to investors prepared for more substantial capital commitments.
Some strategies may have lower liquidity, longer lock-in periods, and exit restrictions compared to traditional mutual funds.
Use of leverage, derivatives, and short positions introduces strategy-specific risks, including potential for amplified losses and increased volatility.
Dependence on fund manager expertise and execution capabilities.

How SIFs Differ from Traditional Mutual Funds?

Feature	Specialized Investment Funds (SIFs)	Traditional Mutual Funds
Investor Eligibility	Minimum Investment threshold of ₹10 lakh at PAN level across investment strategies offered by the SIF Provided that the requirement of minimum investment amount shall not apply to an accredited investor.	Open to investors, with low minimum investment (₹100-₹500)
Investment Approach	Long-short equity, tactical asset allocation, limited unhedged short derivatives exposure.	Primarily long-only equity, debt or hybrid.
Liquidity	Variable liquidity: daily to periodic redemptions with notice periods as notified in Investment Strategy Investment Document.	Typically, daily liquidity
Risk Profile	Generally higher due to leverage and complex strategies	Generally moderate to very high depending on fund type

Suitability and Investor Considerations

SIFs may be suited for investors who:

Can commit ₹10 lakh or more and have sufficient understanding of complex investment strategies.
Are comfortable with higher volatility, strategy complexity, and variable liquidity.
Aim to seek portfolio diversification into less conventional asset classes and strategies.
Are prepared for longer investment horizons aligned with redemption terms.

Before investing, investors should review their financial goals, risk appetite, and liquidity needs, and consider consulting a SEBI-registered financial advisor.

Regulatory Oversight and Transparency

SEBI ensures that SIFs maintain high standards of disclosure, risk labelling, and communication.

Fund portfolios, risk levels, and investment strategies must be transparently disclosed to help investors make informed decisions.

These safeguards reinforce SEBI’s commitment to investor protection and market integrity.

Conclusion

Specialized Investment Funds (SIFs) mark an important evolution in India’s mutual fund space, giving investors access to strategy-based investing within a regulated setup.

While these funds can enhance diversification, investors should assess their financial goals, risk profile, and time horizon before participating.

Always remember, SIFs are market-linked products, and seeking guidance from a SEBI-registered financial advisor can help align them with your overall investment plan.

Disclaimer

An Investor Education and Awareness Initiative by Tata Mutual Fund.
To know more about KYC documentation requirements and procedure for change of address, phone number, bank details etc., please visit : https://www.tatamutualfund.com/buying-our-fund/processes or call on 022 6282 7777, Monday to Friday 9.00 am to 5.30 pm or visit the nearest branch
Please deal only with registered Mutual Funds, details of which can be verified on the SEBI website under Intermediaries / Market infrastructure institutions.
All complaints regarding Tata Mutual Fund may be directed to service@tataamc.com and / or https://www.scores.gov.in (SEBI SCORES portal).
Nomination is advisable for all folios opened by an individual especially with sole holding as its facilitates an easy transmission process.
This communication is a part of investor education and awareness initiative of Tata Mutual Fund.

Investments in Specialized Investment Fund involves relatively higher risk including potential loss of capital, liquidity risk and market volatility. Please read all investment strategy related documents carefully before making the investment decision.

The Rise of Hybrid Mutual Funds: Exploring why investors are turning to balanced options

Indian investors are becoming increasingly aware of the importance of balancing growth and stability in their investments. With markets moving through different cycles, many people now prefer options that can offer a mix of asset classes within a single product. This growing interest has brought hybrid mutual funds into focus as part of diversified financial planning.

These funds invest in both equity and debt instruments, combining the growth potential of market-linked assets with the relative steadiness of fixed-income holdings. Whether you are new to investing or already building your portfolio, hybrid mutual funds can offer a structured way to approach investment decisions with balance and discipline. In this article, we explore the rise of hybrid funds and why investors are turning to these funds.

What are Hybrid Mutual Funds?

Hybrid mutual funds are investment schemes that put money into both equities, and debt instruments,. The objective is to balance the potential for capital appreciation from equities with the relative stability of debt. This combination aims to create a more balanced investment experience when compared with investing only in equity or debt.

The equity portion of a hybrid fund’s portfolio provides the potential for long-term capital growth, while the debt portion contributes to stability and helps cushion market fluctuations. Each hybrid fund maintains a defined ratio of equity and debt, which is clearly outlined in the Scheme Information Document (SID). This ratio can vary depending on the fund’s investment strategy and risk profile.

To sum it up, hybrid fund meaning can be understood as:

A mutual fund that invests in a mix of equity and debt assets.
The allocation between the two is defined by the fund’s investment strategy.
The aim is to balance risk and return for steady long-term progress.
It offers diversification and professional management in one product.

For investors seeking simplicity and structure, hybrid mutual funds can act as an efficient starting point for long-term financial planning.

Types of Hybrid Mutual Funds

The Securities and Exchange Board of India (SEBI) has categorised hybrid mutual funds into seven types based on how they allocate investments across equity, debt, and other asset classes. Each category is designed with a specific asset mix, which helps investors select funds according to their own risk profile and financial goals.

Here is a summary of the main categories of hybrid mutual funds and their key features:

Type of Hybrid Fund	Equity Allocation	Debt Allocation	Key Characteristics	Who Can Consider It
Conservative Hybrid Fund	10%–25%	75%–90%	Focuses mainly on debt with limited equity exposure for moderate stability.	Cautious investors seeking relative stability with limited equity exposure.
Balanced Hybrid Fund	40%–60%	40%–60%	Maintains near-equal exposure to equity and debt for a balanced approach.	Investors who want to balance potential equity growth and relative stability.
Aggressive Hybrid Fund	65%–80%	20%–35%	Designed for potential long-term wealth creation with lower volatility than pure equity funds.	Investors comfortable with very high risk for potentially higher equity-linked returns.
Arbitrage Fund	Minimum 65%	Remaining in debt or cash	Focuses on low-risk returns by using the price differences between cash and derivatives markets.	Investors parking surplus funds for the short term.
Dynamic Asset Allocation (Balanced Advantage Fund)	0%–100%	0%–100%	Adjusts equity and debt mix based on market conditions.	Investors seeking an actively managed portfolio that automatically balances between equity and debt in response to market conditions
Equity Savings Fund	Minimum 65%	Minimum 10%	An open ended scheme investing in equity, arbitrage and debt	Investors preferring moderate equity exposure with some hedging.
Multi Asset Fund	Minimum 10% in equity	Minimum 10% in debt

Each type of hybrid fund has a clear investment framework and risk profile. Before investing, you should review the fund’s Scheme Information Document (SID) to understand its asset allocation pattern, investment objective, and associated risks.

Why are Investors turning to Hybrid Mutual Funds?

Balanced Risk and Return

Hybrid mutual funds aim to balance potential growth from equity with relative stability from debt. This helps moderate the overall portfolio risk while maintaining participation in market opportunities. It appeals to investors who prefer steady progress over sharp ups and downs.

Convenience Through Diversification

By investing in a single hybrid fund, you automatically gain exposure to multiple asset classes. The fund manager handles the allocation, so you do not need to manage separate equity and debt schemes. This convenience makes hybrid funds suitable for busy investors.

Goal-Based Suitability

Hybrid funds can align well with specific financial goals such as education planning, home purchase, or retirement. Because they combine growth potential with stability, they help you stay invested through different market cycles without needing frequent adjustments.

May be Suitable for New Investors

If you are new to investing, hybrid funds can act as a bridge between conservative and growth-oriented options. They provide a way to experience equity participation while cushioning the impact of volatility through debt exposure.

Flexibility Across Types
There are different types of hybrid funds—such as conservative, balanced, and aggressive hybrid funds—each catering to distinct investor needs. You can select one based on your risk profile and investment horizon to build a diversified portfolio of mutual funds.
Professionally Managed Allocation
In a hybrid mutual fund, the asset mix is actively managed by professionals who adjust exposure to equity and debt according to market conditions and the fund’s mandate. This removes the need for constant monitoring and supports disciplined investing.
Simplified Wealth Management
Hybrid mutual funds fit well into comprehensive financial management. They help you maintain a diversified mix of assets without overcomplicating your portfolio, offering an easy way to stay aligned with your personal financial planning goals.

Benefits of Investing in Hybrid Mutual Funds

Here are some of the key benefits of investing in various types of hybrid funds:

Diversification within one fund: You gain exposure to both equity and debt through a single scheme.
Balanced risk profile: The equity portion adds growth potential, while debt helps cushion market fluctuations.
Professional management: Fund managers adjust allocations according to the fund’s objectives.
Ease of investing: You can start through SIPs, investing small amounts regularly to build discipline.
Simplified portfolio management: One hybrid fund can serve multiple purposes, reducing the need for frequent rebalancing.

Factors to Consider Before Investing in Hybrid Mutual Funds

While the rise in interest for hybrid mutual funds is strong, you should still consider a few things before investing. Before choosing a hybrid fund, it is worth evaluating how it fits into your personal financial planning. Each fund has its own investment objective, and aligning it with your goals ensures clarity and comfort.

Assess your Risk Tolerance - Determine whether you are a conservative, moderate, or aggressive investor. Conservative investors may prefer conservative hybrid funds with a larger debt allocation, while those comfortable with market swings can explore balanced hybrid funds or aggressive hybrid funds.
Understand the Asset Mix - Review the fund’s allocation between equity and debt. Check if it invests in large-cap, mid-cap, or a mix of equities, as this influences both potential returns and volatility.
Review the Fund’s Performance History - Look at how the fund has performed relative to its benchmark and peers over three to five years. While past performance is not a guarantee of future results, consistent outcomes may reflect disciplined management.
Evaluate Fund Manager Expertise - A fund manager’s experience and decision-making approach can influence how the hybrid fund performs in different market cycles.
Compare Expense Ratios - Lower costs mean a higher portion of your money remains invested. Compare expense ratios across similar types of hybrid funds before making a choice.
Understand the Tax Treatment - Taxation for hybrid funds depends on their classification. Hybrid equity funds are taxed like equity schemes, while debt-oriented funds follow debt taxation rules. Always check the Scheme Information Document (SID) for clarity on how gains will be treated.
Align with your investment objectives - Make sure the fund’s purpose matches your own. Some hybrid funds are designed for long-term capital appreciation, while others focus on generating income with relative stability. Choose one that complements your broader portfolio of mutual funds and wealth management goals.

Who can opt for Hybrid Mutual Funds?

You may consider investing in hybrid mutual funds if:

You are new to investing and want exposure to both equity and debt.
You are a moderate-risk investor looking for balanced and steady allocation.
You are planning medium-term goals such as education, housing, or retirement.
You are nearing retirement and prefer stability with some growth potential.
You are a busy professional who prefers a single diversified investment option.
You are a cautious investor seeking a mix of growth and relative stability.

Conclusion

Hybrid mutual funds have gained prominence among investors who prefer a balanced approach to investing. Their combination of equity and debt allows for diversification within a single portfolio, offering both participation in market growth and relative stability.

Understanding the meaning of hybrid fund and the different types of hybrid funds can help you recognise how these schemes may fit into your financial planning. Including them thoughtfully within your broader portfolio of mutual funds may support a more organised and well-diversified investment plan.

Disclaimers:

An Investor Education and Awareness Initiative by Tata Mutual Fund.
To know more about KYC documentation requirements and procedure for change of address, phone number, bank details, etc., please visit: https://www.tatamutualfund.com/deshkarenivesh
Please deal only with registered Mutual Funds, details of which can be verified on the SEBI website under ‘Intermediaries / Market infrastructure institutions.’
All complaints regarding Tata Mutual Fund may be directed to service@tataamc.com and/or https://scores.sebi.gov.in/ (SEBI SCORES portal) and/or https://smartodr.in/login
Nomination is advisable for all folios opened by an individual, especially with sole holding, as it facilitates an easy transmission process.

This communication is a part of the investor education and awareness initiative of Tata Mutual Fund.

Decoding SIP Trends in Mid-2025: Are investors consolidating or expanding their SIPs?

Systematic Investment Plans (SIPs) are periodic contributions investors make into mutual fund schemes. According to AMFI India, in September 2025, mutual fund SIP collections touched a record high of ₹29,361 crore. This marked a 3.9% rise compared to August. Such an impressive collection shows that investors continued to invest regularly despite market fluctuations.

Besides, the number of contributing SIP accounts also crossed the 9 crore mark during mid-2025 (Source: AMFI Monthly Note - July). These impressive figures show how SIPs have become the preferred way for Indians to invest in mutual funds.

Feeling encouraged to invest? Read this article to first understand these latest trends. Then, check out some mutual fund schemes offered by Tata Mutual Fund™, you may consider in 2025.

In 2025, The SIP AUM Is Increasing!

Based on AMFI data, Systematic Investment Plan (SIP) Assets Under Management (AUM) have shown a consistent increase between January and September 2025. This growth is supported by:

Consistent inflows
Higher participation
Market gains

This trend clearly signals strong investor confidence + the growing importance of systematic investment plan as a long-term potential wealth-building tool. Let’s understand what the trends say:

The SIP AUM Grew By 11.50%
At the start of 2025, SIP AUM was estimated at around ₹13 lakh crore. By September 2025, it had crossed ₹15 lakh crore. This marks a growth of roughly ₹1.5 lakh crore over nine months. (Source: AMFI)
This consistent increase shows that investors have continued to stay invested through SIPs despite market volatility.
There Are Regular Monthly Inflows
Systematic investment plan collections rose every month from around ₹26,688 crore in May 2025 to ₹29,361 crore in September 2025 (Source: AMFI Monthly Notes – May and September). This shows that investors are adding fresh capital to their existing SIP portfolios. Moreover, there is steady investor participation, with the number of active SIP accounts having climbed to over 9 crore as stated above.
What Can You Interpret?
The increase in SIP AUM indicates “maturing investor behaviour”. Rather than redeeming, investors are staying invested and continuing their periodic contributions. Thus, recurring investments from retail investors are primarily driving the industry growth.
What Does the Monthly SIP Contribution Trend Say?
AMFI publishes month-wise SIP contributions in its “monthly notes”. If we analyse the data from January to September 2025, there is a gradual monthly growth in SIP contributions. Check out the latest monthly numbers as reported by AMFI:

Month	Monthly SIP Contributions
September	₹29,361 crore
August	₹28,265 crore
July	₹28,464 crore
June	₹27,269 crore
May	₹26,688 crore
April	₹26,632 crore
March	₹25,926 crore
February	₹25,999 crore
January	₹26,400 crore

What Do These Numbers Tell?

There is an overall positive and upward trend in systematic investment plan contributions so far in 2025. SIP contributions have risen from ₹26,400 crore in January to a record ₹29,361 crore in September 2025. That’s an increase of nearly ₹2,961 crore, or about 11% growth in nine months.

This trend shows growing investor confidence and a maturing investment culture. Retail investors are choosing to continue their SIPs even during volatile phases, which means they trust the long-term potential of mutual funds.

What’s Causing this SIP Rush?

More investors are entering through new SIP registrations.
Existing investors are increasing their SIP amounts or starting additional SIPs.
There is rising awareness about disciplined investing and rupee cost averaging.
Market stability and better performance could be the reasons for investors to make a long-term commitment.

So, Want to Invest via the SIP Route? Tata Mutual Fund™ Schemes You May Consider in 2025!

Based on the AMFI data for 2025, you may assume that investors are expanding their SIPs. If you, as a disciplined investor, are also looking to invest, Tata Mutual Fund™ offers multiple scheme category options, such as:

ETFs
Fund of Funds
Equity schemes
Debt funds
Index funds
Hybrid funds, and more

All these options allow you to invest via SIPs. Now, let’s check out some mutual fund schemes you may consider investing in 2025:

All the below shall be as per latest SIDs

Mutual Fund Scheme	Product Label	Benchmark	Scheme Riskometer	Benchmark Riskometer	Exit Load
Tata Gold ETF	An open-ended exchange-traded fund replicating/tracking the domestic price of gold	Domestic Price of Gold	High Risk	High Risk	NIL
Tata Silver ETF Fund of Funds	An open-ended fund of fund scheme investing in the Tata Silver exchange-traded fund	Domestic Price of Silver	Very High Risk	Very High Risk	Redemption/ Switch-out /SWP/ STP on or before expiry of 7 days from the date of allotment: 0.5%
Tata Silver ETF	An open-ended exchange traded fund replicating /tracking the domestic price of silver	Domestic Price of Silver	Very High Risk	Very High Risk	NIL
Tata Banking and Financial Services Fund	An open-ended equity scheme investing in the banking and financial services sector	Nifty Financial Services TRI	Very High Risk	Very High Risk	0.25% of the NAV, if redeemed/switched out before 30 days from the date of allotment

Risk Level of All the Above Mutual Fund Schemes

1. Tata Gold ETF

2. Tata Silver ETF Fund of Funds

Tata Silver ETF Fund of Funds Riskometers

3. Tata Silver Exchange Traded Fund

Tata Silver Exchange Traded Fund Riskometers

4. Tata Banking and Financial Services Fund

Tata Banking and Financial Services Fund Riskometers

5. Tata Floating Rate Fund

6. Tata Nifty G Sec Dec 2029 Index Fund

TATA Nifty G Sec Dec 2029 Index Fund Riskometer

7. Tata Arbitrage Fund

Pick The Right Schemes Using the Digital Calculators and Tools!

As a mutual fund investor, you can even use tools like a monthly SIP investment calculator or a mutual fund SIP planner. They allow you to understand how your investments may grow over time. All you have to do is enter some basic details such as:

Your SIP amount
SIP Expected Return
Investment period

Next, the SIP return calculator instantly estimates your probable future returns. For example,

Let’s say you had invested ₹1,000 per month for 5 years.
Now, this calculator would have shown you the potential maturity value and total notional gain.

Additionally, you can even compare options through a lump sum calculator. This allows you to understand how SIPs perform versus one-time investments.

Conclusion

So, are investors consolidating or expanding their SIPs? If we were to answer based on the AMFI data for 2025, investors appear to be expanding their SIP participation.

The trend shows growth in both collections and participation. Let’s revise what the latest data tells us:

SIP collections touched an all-time high of ₹29,361 crore in September 2025. This indicates that investors are adding fresh money or starting new SIPs rather than reducing commitments.
The number of actively contributing SIP accounts crossed 9 crore. Now, there are more individuals joining the SIP route.
Monthly SIP inflows have risen steadily from about ~₹26,000 crore in April to nearly ~₹29,000 crore in September.

Invests across at least three asset classes such as equity, debt, and gold with at least 10% in all three asset classes

Tata Floating Rate Fund

Aspects	Part I: Username	Part II: Handle
Structure	The intermediary’s name + a short code for its type.	The fixed phrase “@valid” + the intermediary’s bank name.
Example	A broker may set the username “abc.bkr” A mutual fund may set “xyz.mf”	A broker may use the UPI ID “abc.bkr@validhdfc” A mutual fund may use the UPI ID “xyz.mf@validicici”

For Lumpsum Investments	For SIP Mandates
tatamf.cpaypurchase.mf@validicici	tatamf.cpaysip.mf@validicici

SIP Calculator

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