SIP Stoppage Ratio Surges To All-Time High In April 2025

SIP Stoppage: Mutual funds have become a popular asset class in India in the last two decades. While the popularity of mutual funds has grown investors are increasingly stopping their investments in mutual funds via the Systematic Investment Plan (SIP) route according to data from the Association of Mutual Funds In India (AMFI).

SIP Stoppage At Record High In April

The high number of discontinued SIPs has taken the SIP stoppage ratio to a record high of 297.73 per cent. Notably the SIP stoppage ratio is calculated by comparing the number of SIPs that have been discontinued or have reached the end of their tenure with the number of fresh SIPs opened.

On a month-on-month basis the SIP Stoppage ratio for April 2025  has increased by 16,946 basis points from 128.27 per cent in March 2025. On the other hand the ratio has also grown significantly by 24,549 bps from 52.24 per cent in April 2024.

According to Amfi data for the month of April, as many as 136.99 lakh SIPs were either discontinued or reached the end of their tenure. On the other hand the number of fresh SIPs opened stood 46.01 lakh. So far in FY26, the total number of outstanding SIP accounts stood at 914.41 lakh and the number of outstanding accounts stood at 838.25 lakh.

What Does A Rising SIP Stoppage Ratio Indicate

Generally if the SIP stoppage ratio surpasses the 100 per cent mark, it indicates that more SIP accounts are being discontinued than are being opened. Notably, the number of discontinued SIPs also includes SIPs that have expired and cases in which the investor has switched from one scheme to another.

Venkat Chalasani, Chief Executive, AMFI said in a release on May 9 that while geopolitical developments and border tensions may introduce volatility, they should focus on their long-term goals.

"While geopolitical developments and border tensions may introduce short-term market volatility, investors are encouraged to stay focused on their long-term financial goals. Reacting impulsively to temporary market movements can derail investment strategies. India's economic fundamentals remain resilient, and the long-term growth outlook continues to be strong and promising," Chalasani said.

While the SIP stoppage ratio has surged to a record high mutual fund SIP inflows have also achieved an all-time high level in April. Notably the inflows in the month of April 2025 grew by 3 per cent to Rs 26,632 crore compared to Rs 25,926 crore in March 2025. The SIP Assets Under Management (AuM) also increased to Rs 13.89 lakh crore in April 2025 compared to Rs 13.35 lakh crore in March 2025.

"Systematic Investment Plan (SIP) contributions surged to an all-time high of Rs 26,632 crore in April, driven by a steady increase in the number of contributing accounts, which now total 8.38 crore. This continued growth reflects the rising preference among investors for mutual funds as a disciplined and effective tool for long-term savings,"  Chalasani said.