The stoppage ratio has hovered between 72% and 76% in this fiscal.
The systematic investment plan (SIP) stoppage ratio has been inching up steadily in the last few months to hit 76 per cent in November from the lowest of 63 per cent so far in this fiscal logged in July.
In November, while the number of new SIP accounts opened were at 57.14 lakh, the stoppages/matured were at 43.18 lakh, implying a high churn rate due to weak returns delivered in last one year.
The stoppage ratio has hovered between 72 per cent and 76 per cent in this fiscal. The SIP stoppage ratio is the number of discontinued SIPs compared to the number of new accounts registered.
If this ratio crosses 100 per cent, then it indicates that more MF SIPs are being stopped than the ones started. However, the stoppage ratio also includes those SIPs that have matured.
In April, the SIP ratio touched a high of 406 per cent after the Association of Mutual Funds in India eliminated legacy SIP accounts that were not contributing consecutively for three months in a row as per SEBI norms.
Despite the high stoppage ratio, the inflows through SIPs have increased to ₹29,445 crore last month against ₹26,632 crore registered in April.
The discontinuation of SIPs were largely due to flattish return delivered by the equity markets during larger part of last one year.
In 2025, Nifty has given a return of 9 per cent while Sensex increased 8 per cent aided by the sudden spurt in foreign investment in last two months. The Sensex return was just 2 per cent and that of Nifty was 4 per cent between January and September.
Akhilesh Prakhya, Investment Manager, SKG Investment and Advisory, CAT 3 AIF, said despite continued strength in SIP inflows, the latest data up to November clearly shows that SIP stoppages are rising alongside record contributions, underscoring a churn driven rather than sentiment driven trend.
A key reason is tenure completion, as many SIPs initiated during earlier market cycles, especially post-Covid and during the 2021-22 retail surge were set up with fixed horizons and are now naturally maturing, he added.
Additionally, income and liquidity pressures are visible, as households rebalance cash flows amid higher living costs and competing financial priorities. This is reflected in periodic moderation in contributing SIP accounts, which stood at 942.5 lakh in November, below the peak levels seen earlier in the cycle, said Prakhya.
Published on December 20, 2025