Mutual Fund SIP Stoppage Ratio Crosses 75% in February

India’s mutual fund industry saw a rise in the Systematic Investment Plan (SIP) stoppage ratio in February, even as monthly contributions from investors declined slightly. According to data released by the Association of Mutual Funds in India (AMFI), the SIP stoppage ratio increased to 75.62% in February, compared to 74.83% in January.

The SIP stoppage ratio measures the number of SIP accounts discontinued or completed relative to new SIP registrations during a specific period. A higher ratio indicates that a large number of SIPs are being stopped or reaching maturity compared to new registrations.

At the same time, monthly SIP inflows dropped to ₹29,845 crore in February, down from ₹31,002 crore recorded in January. This represents a modest month-on-month decline of around 4%.

Experts say the dip in inflows is partly due to the shorter month of February, which has fewer banking days. In many cases, SIP instalments scheduled for the 29th, 30th, or 31st of the month are processed in early March, temporarily reducing the reported inflow numbers for February.

Despite the slight rise in the stoppage ratio, overall participation in SIP investing continues to grow. The total number of SIP accounts in India increased to over 10 crore, while the assets managed through SIP investments rose to about ₹16.64 lakh crore.

Industry experts believe the rise in the stoppage ratio does not necessarily mean investors are leaving mutual funds. In many cases, SIPs are discontinued because they reach their planned tenure, or investors shift their investments to other schemes as part of portfolio adjustments.

Overall, the mutual fund industry continues to see strong retail participation, and analysts expect SIP inflows to remain stable or recover in the coming months as market participation and long-term investing trends stay strong in India.

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