After April spike, SIP stoppage ratio drops to 73% in May

For the month contributing SIPs grew from 8.38 crores to 8.56 crores.

After hitting a high of nearly 300 percent in April, SIP stoppage came down to around 73 percent for the month of May. Data from the Association of Mutual Funds in India (AMFI) showed that a total of around 0.43 crore accounts were stopped or matured during the month, while around 0.59 crore new SIP accounts were registered. In April 2025, around 0.46 crore new SIP accounts were registered against 1 crore accounts that were stopped or matured.

An SIP stoppage ratio below 100 means that new SIP registrations outnumber stoppages, indicating net positive growth and healthy investor participation. This latest dip comes after months of rise in SIP stoppage ratio which began in January this year.

While the number has been alarming, industry players and AMFI (Association of Mutual Funds India) had previously noted that the rise in stoppage ratio was not a sign of waning investor interest but instead was because of the completion of a SEBI mandated reconciliation process. The process involves reconciling the number of SIP accounts with Registrar and Transfer Agent (RTAs) and those with the exchanges.

In previous communication with the media, AMFI chairman Venkat Chalasani had noted that the process had been completed and an improved number would be reflected in the May numbers.

Overall, industry players continue to show optimism on SIP numbers. Viraj Gandhi, CEO, SAMCO Mutual Fund noted that investor confidence through Systematic Investment Plans (SIPs) remained resilient as monthly SIP inflows edged up by 0.21 percent to a record high of Rs 26,688 crore, compared to Rs 26,632 crore in April. The SIP assets under management (AUM) surged to Rs 14.61 lakh crore from Rs 13.90 lakh crore, comprising 20.24 percent of the mutual fund industry’s total AUM, up from 19.9 percent the previous month.

He added that the SIP stoppage ratio improvement was encouraging.

Akhil Chaturvedi, Executive Director & Chief Business Officer, Motilal Oswal AMC added, "SIP numbers over Rs 26,000 crore is very encouraging, which implies that the fresh investment preferred route has been SIP than lumpsum.”

Referring to the monthly SIP numbers, Chalasani, in a call with the media noted that the SIP trend this month was a redeeming feature, which has reiterated the growing preference to the SIPs. For the month contributing SIPs grew from 8.38 crore to 8.56 crore.

SIP stoppage ratio concerns the number of Systematic Investment Plans (SIPs) that are discontinued or terminated within a specific period against the new SIPs started, This could happen when investors manually cancel their SIPs or fail to make payments due to reasons like insufficient funds. A high SIP stoppage figure can indicate waning investor confidence or financial stress among retail investors. It is an important metric for assessing the stability of mutual fund inflows.  Even if SIP registrations are high, a large number of stoppages may suggest that the inflows are not consistent or sustainable.

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