SIP Stoppage Ratio Jumps Nearly 300% in April Despite Record-High Inflows
The Mutual fund industry recorded an instant rush for stoppages in Systematic Investment Plan (SIP) during April 2025 with an astonishing percentage hike to a massive 297.74%. That is the greatest increase on record, exceeding previous high posts at 128.27% for March 2025 and at 52.24% during April 2024. It is possible that more individuals cancelled their regular SIPs or settled their SIP terms than switched into new SIP registrations.
In April 2025, SIPs which were stopped or had reached the end of their term totaled 136.99 lakh, whereas only 46.01 lakh new SIPs were started in the same month.
On the beginning of the financial year FY26, there were outstanding SIP accounts totaling 914.41 lakh. During the last financial year, FY25, the stoppage ratio of SIP was 75.63% with 514.17 lakh SIPs stopped and 679.85 lakh new SIPs enrolled.
In spite of increasing stoppage ratio, investor response to mutual funds continued to be robust. Number of contributing SIP accounts during April stood at 838.25 lakh and SIP contributions crossed all-time high to Rs. 26,632 crore a growth from Rs. 25,926 crore during March.
The SIP stoppage ratio gauges the number of SIPs stopped against the number of new ones initiated. A ratio over 100% means more SIPs are being stopped than initiated. But this number also counts SIPs expired at the end of their intended tenure. Also, some investors might have moved from one SIP to another while rebalancing portfolios.
As per monthly statistics made public by the Association of Mutual Funds in India (AMFI), retail mutual fund folios equity, hybrid, and solution-based schemes increased to 18.71 crore during April from 18.58 crore in March. Retail Assets Under Management (AUM) for such schemes also increased and stood at Rs. 40.29 lakh crore in April, against Rs. 38.83 lakh crore in March.
Total mutual fund folios went up to 23.62 crore as of April 2025 from 23.45 crore in March. SIP AUM went up to Rs. 13.89 lakh crore from Rs. 13.35 lakh crore in the same period.
SIP contributions have today crossed all-time high, helped by a consistent growth in contributing accounts, which is an indicator of increasing trust in SIPs as a systematic approach to long-term financial planning. The growth underlines increased awareness among investors on staying invested amidst market fluctuations and SIPs as a methodical approach towards creating wealth.
In the midst of continuing geopolitical tensions and market volatility, investors are being urged to remain focused on long-term objectives. Emotional responses to short-term changes in the market could impact long-term investment returns. The nation’s sound economic fundamentals and favorable long-term growth perspective continue to provide a firm foundation for mutual fund investments.
