SIP Stoppage Ratio Hits Record High In February To 122 Per Cent - Check Details

The Systematic Investment Plan (SIP) stoppage ratio has shown a declining trend in the first two months of the calendar year 2025. The SIP stoppage ratio measures the number of SIPs which have been discontinued compared to the number of new SIPs that have been registered.

Typically, an SIP stoppage ratio of over 100 per cent indicates that the number of SIPs which are being stopped is more than the number of SIPs that have started.

According to data released by the Association of Mutual Funds in India (Amfi) the stoppage ratio at the end of February 2025 stood at 122.76 per cent, growing from 109.15 per cent in January.

The rise in the stoppage ratio shows that more investors discontinued their SIPs as compared to starting new SIP accounts. In February as many as 54.7 lakh SIP accounts were discontinued or completed and the number of new SIPs registered stood at 44.56 lakh.

While the SIP stoppage ratio indicates the approach investors are taking towards their SIP investments, it must be noted that the number of discontinued SIPs also includes folios that have finished their tenure along with instances in which investors may have shifted from one SIP scheme to another.

The record high stoppages come amid wide corrections in the stock market seen in the last six months. Following the all-time high levels seen earlier in 2024, the Indian stock market has been undergoing corrections. The benchmark indices have fallen significantly in the last six months with the Nifty 50 declining 14.76 per cent from its all-time high of 26,277.35 to close at 22397.2 levels on March 14. The 30-share Sensex has also declined by 14.13 per cent from its all-time high level of 85,978.25 to close at 73828.91 levels.

Trends In SIP Data In February

In February, the monthly contribution of systematic investment plan (SIP) inflows into mutual funds fell to Rs 25,999 crore from Rs 26,400 crore in January. SIP AuMs also declined to Rs 12,37,784 crore in February from Rs 13,19,853 crore in January. The number of outstanding SIP accounts stood at 10.16 crore as of February, decreasing from 10.26 crore in January.

Venkat Chalasani the Chief Executive of Amfi commented on the data for the month of February and stated that the mutual fund industry has managed to show resilience despite market fluctuations. He added that SIP contributions have remained steady even during the fluctuations.

"The Indian mutual fund industry continues to demonstrate resilience, with consistent investor participation across categories. Despite market fluctuations, net inflows stood at Rs 40,063 crore, reflecting investor confidence in long-term wealth creation. The decline in overall AUM from January to February was primarily due to mark-to-market losses in equity funds. However, SIP contributions remained steady, highlighting continued investor preference for systematic investments," Chalasani said.