Five Common Mutual Fund Investing Mistakes Investors Should Avoid

As of June 2026, India's mutual fund industry AUM stood at Rs 82.22 lakh crore with 27.86 crore folios.

SIP account discontinuation ratio crossed 100 per cent in March and April 2026, indicating more SIPs discontinued than registered.

Investors often invest without clear goals or time horizons, leading to premature redemptions when other opportunities appear.

Chasing previous year's top-performing funds is common; flexi-cap funds received net inflows of Rs 10,054 crore in March 2026, while small-cap and mid-cap schemes attracted Rs 6,264 crore and Rs 6,064 crore respectively.

Investors frequently exit during temporary market declines of 5-7 per cent, disrupting long-term compounding and incurring tax and exit-load charges.