More investors stopped SIPs than started new ones in October

Résumé détaillé

Discontinuations and completed tenures pushed the SIP stoppage ratio to a six-month high of 116%, even as monthly contributions held steady above ₹32,000 crore.

More investors discontinued their systematic investment plans (SIPs) than registered new ones in October, pushing the SIP stoppage ratio to 116%, its highest level since April 2025, according to data from the Association of Mutual Funds in India (Amfi).

The SIP stoppage ratio measures the number of SIPs discontinued or whose tenure has ended against the number of new SIPs registered during a month. A ratio above 100% indicates that more SIPs were stopped than new ones started.

In October, 5.9 million SIPs were either discontinued or completed their tenure, while 5.1 million new SIPs were registered. The stoppage ratio was 79% in September.

The rise in SIP closures coincided with a broader slowdown in equity mutual fund inflows. Net inflows into equity schemes dropped 14% month-on-month to ₹32,924 crore in October, the Amfi data showed. SIP contributions in October were at ₹32,162 crore, a little below the ₹32,490 crore recorded in September.

A section of investors, particularly those who entered mutual funds over the last three to four years, may be stopping their SIPs due to disappointing returns, according to Manish Mehta, chief business officer at SBI Mutual Fund.

“Interactions with do-it-yourself investors, especially those investing through fintech platforms, suggest that while new investors continue to register SIPs, existing investors are increasingly discontinuing them, resulting in net negative SIP flows from older investors,” Mehta said.

Feroze Azeez, joint CEO at Anand Rathi Wealth Limited, said, “The stoppage ratio is not necessarily a measure of investor pessimism. It also captures SIPs completing their tenure and can rise when fresh registrations moderate. Plus, SIP stoppages only measure the number of mandates, while SIP contributions measure the money investors continue to commit.”

Despite market volatility, SIP contributions in October were just 1% below September’s record high, 8.9% higher year-on-year, and above ₹32,000 crore for the third consecutive…

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