Investors are stopping investing in SIP!
In the last few years, mutual fund SIP (Systematic Investment Plan) has become the easiest and most reliable way of investment. Its facility of creating a big fund by investing small amounts every month attracted millions of people. But now the situation seems to be changing. According to the latest data, a large number of investors are closing their SIPs. After all, what is the reason that people are staying away from this popular investment instrument? Let us understand…
More than 44 lakh SIPs closed in September
According to data from the Association of Mutual Funds in India (AMFI), about 44.03 lakh SIPs were closed in September 2025. In August this number was 41.15 lakh, i.e. an increase of about 7%. Last year, around 40 lakh SIPs were closed in the same month. This trend shows that investors are now rethinking their strategies, some are scared of market volatility, while some are stopping SIPs due to achievement of their goals or poor performance of the fund.
ups and downs visible since last four months
AMFI data shows that the pace of SIP closure has been continuously changing for the last few months. 48 lakh SIPs were closed in June, 43 lakh in July, 41 lakh in August and again increased to 44 lakh in September. It is clear that investors are still confused about their investments and are constantly reviewing their portfolios.
Big reasons behind closing SIP
Improving portfolio: Many investors want to reduce risk and get better returns by dividing their investments into several smaller SIPs instead of a single SIP. For this they have to stop the old SIP and adopt a new strategy.
- Choosing the wrong fund: Sometimes investors later realize that they chose a fund that does not match their goals or risk profile. In such a situation, stopping SIP and shifting the money to a better fund through Systematic Transfer Plan (STP) is the right step.
- Poor performance of sector funds: If the performance of a sector-based fund has been weak for a long time, then continuing SIP in it can be harmful. In such a situation, investors prefer to go to broad market or large cap funds.
- Financial pressure or emergency: In situations like job loss, medical expenses or family financial crisis, stopping SIP becomes a compulsion. Maintaining cash is a priority at this time.
Stopping SIP is not always a mistake
It is often said that SIP should never be stopped, but financial experts do not completely agree with this. He believes that stopping SIP is not necessarily a bad decision, but this decision should be taken based on need and advice.