India’s SIP surge hides a churn crisis. In 2025, 86% of new SIPs were cancelled, driven by volatility jitters, mis-selling, and short-term behaviour. Until transparency improves and investors stay the course, India’s celebrated SIP engine risks becoming more rotation than compounding
“Drink stocks SIP by SIP,” is a story that has been sold very well in the last few years and it continues to capture the imagination of people.
In October 2025, INR29,529 crore – the highest ever – was invested in mutual funds (MFs) through the systematic investment plan (SIP) route. SIPs are a way of regular investing into an MF. Most of the money coming in through the SIP route is invested in equity MFs which invest largely in stocks.