SIP Closed: Around 1.12 crore SIPs have been closed in the year 2025, due to which an atmosphere of fear is seen among the investors. Investors’ confidence has weakened due to market instability and changes in tax rules. At the same time, experts say that investors can return again as soon as the market stabilizes.
SIP Closed: SIP i.e. Systematic Investment Plan in mutual funds has become very popular among investors these days. By investing a small amount every month, a good amount of funds can be created in the long term. Meanwhile, such a news has come out about SIP, which has surprised everyone. So far in the year 2025, 1.12 crore SIPs have been closed. In such a situation, the question arises whether people have lost faith in mutual funds now? Let’s know the full details
This year, a trend has been seen in mutual funds, which is a bit disturbing. Out of the first six months of the year 2025, there were four months when more old SIPs were closed than new SIPs started. 5 lakh more SIPs were closed in January, 10 lakh in February, 11 lakh in March and 116 lakh SIPs were closed in April. In such a situation, it can be said that this time people are a little more scared about the market.
Analysts’ opinion
Shruti Jain, Chief Strategy Officer of Arihant Capital Markets, while talking to ET Mutual Funds, said that uncertainty has increased all over the world. In such a situation, there has been a decline in SIP this year. At the same time, she further said that due to this decline, investors have become a little cautious. The tax rules changed by Trump at the beginning of the year still have created fear among investors. Especially in April, many people stopped their SIPs. At present, there is no need to worry. Investors’ confidence in the market has started to show. In such a situation, investors have started returning again.
Investors’ confidence will be strengthened again
Out of the first six months of the year 2025, there were only two months when the number of new SIP registrations was positive, while in four months the number of SIP closures was higher. According to Nomura’s report, net SIP registrations in January were -5 lakh, which means more SIPs were closed that month. It is clear from this trend that investors are currently cautious about the market, but experts believe that soon with stability, investors’ confidence will be strengthened again.
Know what is SIP stoppage ratio
SIP stoppage ratio means how many old SIPs are closed compared to the number of new SIPs started. If this ratio is more than 100 percent, then understand that more old SIPs are being closed than new SIPs. According to AMFI data, 78% SIPs were closed in June, which was 72% in May and 59% in June last year. In April, the SIPs that were closed were three times more than the new SIPs. This means that investors are still cautious and watching the market situation.
Disclaimer: This article is for educational purposes only. The views and recommendations given above are those of individual analysts or broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
