Article’s

The Indian mutual fund industry has witnessed an unprecedented influx of retail participation, largely driven by the democratization of Systematic Investment Plans (SIPs). However, despite robust initial adoption rates, a systemic challenge persists: the high frequency of premature SIP discontinuation among first-time investors. While contemporary financial literature extensively documents the variables driving fund adoption, a critical empirical void exists concerning post-purchase investment attrition. This study investigates the complex, interrelated determinants that trigger the abrupt cessation of SIPs before the realization of long-term wealth-compounding benefits. Situated firmly at the intersection of behavioral finance and consumer behavior, this research employs a cross-sectional quantitative methodology. Primary data is aggregated from a structured sample of 100 first-time urban retail investors utilizing a 5-point Likert scale questionnaire. The data is subjected to rigorous statistical evaluation using IBM SPSS Statistics 26, incorporating Regression, ANOVA, and Chi-Square analyses. The research comprehensively evaluates three primary constructs: market-driven anomalies (sensitivity to short-term volatility), behavioral and cognitive biases (loss aversion, herding, and financial literacy gaps), and service-related friction (the efficacy and isolation of digital trading platforms). The findings aim to decode the psychological and operational mechanics of capital flight, ultimately providing actionable intelligence for Asset Management Companies (AMCs) and independent financial advisors to engineer targeted retention strategies and mitigate early-stage investor attrition.