The trend comes amid heightened global and domestic market volatility, driven in part by geopolitical tensions, with the Nifty50 declining over 11% during the month.
According to data from the Association of Mutual Funds in India (AMFI), the SIP stoppage ratio rose to 101% in March, indicating that closures exceeded new registrations.
While the ratio crossing the 100% mark may appear concerning, it is not unprecedented. It first breached this level in January 2025 and remained elevated in the following months, with April 2025 seeing a sharp spike to 353%. That surge was largely driven by back-dated folio pruning and the clean-up of dormant accounts, rather than panic-led exits by investors.
In March, 53.38 lakh SIPs were discontinued or matured, compared with 52.82 lakh new registrations. This compares with 49.70 lakh discontinuations and 65.72 lakh registrations in February, highlighting both a rise in stoppages and a sharp drop in new additions.
The higher stoppage ratio reflects a combination of factors. Volatile markets tend to make new investors cautious, while the financial year-end often leads to the maturity of existing SIPs. Some investors may also have discontinued SIPs as part of portfolio rebalancing, shifting between schemes rather than exiting altogether. Uncertainty around market direction may have further contributed to a more cautious approach.
A SIP stoppage ratio measures discontinued SIPs relative to new registrations in a given month, with a ratio above 100% indicating more stoppages than additions.
Also Read: SIP inflows climb to ₹32,087 crore in March amid market volatility
Despite the rise in stoppages, inflows remained strong. SIP contributions increased 7.5% month-on-month to ₹32,087 crore in March—the highest ever—after a dip in February due to fewer working days.
Overall, the data suggests the spike in stoppages reflects a mix of market caution, seasonal factors and technical adjustments, rather than a broad-based withdrawal by investors.