Arun Patel, founder and partner at Arunusset Investment Services, shared his insights in Business Standard on how behavioral missteps led many investors astray in 2025, particularly in the F&O segment.

He emphasized that individual traders often ignored position sizing, risk controls, and proper execution, leading to disproportionate losses. He noted that excessive leverage, high transaction costs, and overconfidence fueled by “quick profit” narratives contributed to magnified losses. He stressed the importance of systematic discipline over reactionary decisions, cautioning that aggressive trading habits and poor timing can erase capital even in bullish markets.

Additionally, he pointed to concerning trends in mutual fund behavior, highlighting that 40% of SIP accounts now operate through direct platforms, with nearly half of total AUM coming from digital-first investors.

He observed that this shift, coupled with a rise in SIP stoppage during volatile phases, signals a critical gap in investor education.

According to Arun Patel, disruptions in SIPs often occur when investors fail to grasp long-term compounding benefits and react emotionally to short-term market movements.