The number of discontinued SIP (Systematic Investment Plan) accounts surged to a staggering 54.70 lakh in February. The number of active accounts dropped to 44.56 lakh. The stoppage ratio of the till-recently red-hot investment class among mutual funds hit an all-time high of 122%. This clearly indicates that the share of discontinued or expired SIP accounts is increasing at a faster pace than new registrations.
SIPs have grown substantially over the past decade, reflecting a significant shift in individual’s investment behaviour. From Rs 8,513 crore in February 2020, the monthly inflows have grown more than three times to reach Rs 25,999 crore in February 2025 after scaling the Rs 26,459 crore mark in December 2024.
When it comes to SIPs, the stoppage ratio is the percentage of discontinued/expired accounts relative to new registrations. SIPs have been in focus over the past few months and the funds industry has been doubling down in its messaging, advising investors to stay long in SIPs despite a bleeding market, which has seen the indices plunging by close to 18% from their September 27, 2024, peaks.
In its latest data release earlier this week, the Association of Mutual Funds (Amfi), has said SIP inflows in February hit a three-month low of Rs 25,999 crore, down from Rs 26,400 crore in January and Rs 26,459 crore in December, while other funds saw steeper declines with inflows into equity-linked funds falling 26%, those into mid-caps plunging 35% and inflows into small-caps dipping 34% as the market selloff that began in October, intensified for the fifth month with indices losing close to 6% in February alone.
