NJ Wealth Reveals Its SIP Survival Rate

Most investors do not quit because markets fall. They quit because panic feels like action. NJ Group says the antidote is a habit that survives bad news. In this interview with Outlook Money, Jignesh Desai, co-founder of NJ Group, shares NJ’s persistence data and the operating playbook they use to keep SIP behaviour steady through market cycles.

Q ) You have built your business around long term SIPs. When markets turn volatile, what stops investors from pulling the plug?

A) First, partner conviction. If the distributor understands drawdowns and recoveries, they can explain what is happening without drama. We are strengthening behavioural finance training and market cycle learning modules so partners can coach behaviour, not just recommend funds.

Second, simplicity. In a panic, nobody wants a lecture. We give partners clear visuals that show the long term cost of stopping SIPs versus staying invested. When markets are noisy, we increase the frequency of webinars, guidance notes and easy to share investor material so the partner is never improvising in front of fear.

Q) Discipline is a nice word. What is the strongest proof point you have?

A) Five year persistence. Our SIP retention rate is 61 percent. By that we mean 61 percent of new SIP investors onboarded between FY14 and FY20 continued beyond the five year milestone as on 30 June 2025. (Source is NJ internal data and AMFI.)

This number matters because compounding breaks when the habit breaks. A stopped SIP is not just a missed month. It is a reset of behaviour.

Q) What does that persistence translate into for the distributor business itself?

A) It shows up in scale and stability. As of November 2025, 492 NJ Wealth Partners have crossed `100 crore in AUM. That kind of outcome is hard to build on lump sums alone because lump sums are 1 time investments. On the other hand, SIPs are recurring, process-driven investments.

Q) You say your SIP to AUM ratio is 136 percent higher than the industry average. What does that tell you?

A) We calculate SIP to AUM as live SIP divided by total AUM. A higher SIP intensity indicates a structurally steadier book, because SIP flows tend to be more resilient through volatility than lump sum flows.

Q) Banks, apps and direct plans are coming for the same middle class investor. Leaving commissions aside, why does a distributor still matter?

A) investing failure is usually behavioural. Apps improve execution. They do not prevent panic selling, return chasing, over switching or tip driven buys. A distributor adds judgement and accountability. They can connect financial Needs, family priorities and risk capacity to an allocation and then hold the investor steady when markets test nerves.

Q) Investors now want international funds and factor strategies. How do you stop the next SIP from becoming a fashionable mistake?

A) We treat new strategies as study material first. We do upgrade the shelf, but additions are evaluated for long term relevance, risk clarity and suitability. Training is about fit, not excitement. Where does this belong. Where does it not. That is how you keep the next SIP future ready without turning it into a bet.

Q) A 25 year old partner in a Tier 3 town wants `5 lakh a month trail income by 40. What should they do and avoid?

A) Put the investor first. Keep the approach simple and SIP led. Stay patient. Trail income feels slow early on, then it compounds once AUM scales. Avoid recommending funds based on recent winners or social buzz. Build portfolios on suitability and fundamentals.

As an illustration, if a partner onboarded 10 investors with SIPs of Rs 5,000 a month for five years, 15 years ago, the AUM could be around Rs 100 crore and the monthly trail around Rs 5 lakh, (assuming equity fund returns of 12 percent per annum as per AMFI best practice guidance circular 109 A 2024 25 dated 10 September 2024. This is an illustration, not a promise. Mutual fund investments are subject to market risks. Read all scheme related documents carefully.) (Source is NJ internal data and AMFI.)

Disclaimer: The Views are Personal and not a part of the Outlook Money Editorial Feature