Investing is primarily aimed at generating long-term wealth. When investing in mutual funds, it is recommended to use a systematic investment plan (SIP) to maximize the benefits of rupee cost averaging.
When you invest regularly via SIP, any wealth advisor worth his salt would advise you to continue your SIP come rain or shine. However, there are some investors who – for a variety of reasons – happen to discontinue them or stop them upon completion of tenor.
In Nov 2025, 43.18 lakh SIPs were discontinued (or completed). In the previous three months, the corresponding figures stood at 45.10 lakh (Oct), 44.03 lakh (Sept) and 41.15 lakh (August), respectively.
Interestingly, SIP contribution also declined marginally in November 2025 to ₹29,445 crore from ₹29,529 crore in the previous month, whereas in most months it tends to rise.
These are some of the reasons which some investors may decide to discontinue their SIP.
(These also include the SIPs whose tenor was completed)
Investors pause their SIPs for these reasons
>> When they want to exit the fund and have a better alternative.
>> When they have completed the tenor of a certain period, say 3 years.
>> When they have already achieved their financial goals.
>> When the fund has consistently underperformed, and you have now lost your patience.
>> There could be an emergency for which you need urgent cash and have to discontinue the SIP.
However, wealth advisors often tell investors to control the temptation to stop their SIP. One should avoid pausing it since it disrupts rupee cost averaging, the key advantage of opting for SIP.
Nilesh D Naik, Head of Investments Products, Share.Market (PhonePe Wealth) says, “The only scenario when you should consider pausing your SIPs is in the event of a serious cash flow constraint due to unexpected expenses or job loss or any similar situation. SIP helps to overcome such behavioural biases, thus facilitating uninterrupted, long-term wealth creation. Therefore, market conditions or market outlook should never be the reason to pause your SIPs.”
“Pausing your SIPs is not a good step. If you are investing in equity mutual funds towards your long-term goals, a market correction is typically the best time to continue your SIPs and buy more units. This helps you to increase portfolio value once the market starts recovering,” says Preeti Zende, Founder of Apna Dhan Financial Services.
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