The latest Association of Mutual Funds of India (AMFI) data suggests that a large number of investors in April discontinued their systematic investment plans (SIPs). The number of discontinued SIPs crossed 1.62 crore in April 2025, more than three times the corresponding number for preceding months.
In March, the number of discontinued SIPs stood at 51.55 lakh and 54.7 lakh in February. In January this year, the number of discontinued SIPs stood at 61.33 lakh.
Ironically, SIP contribution has been growing month after month, albeit marginally. In April, the SIP contribution stood at ₹26,632 crore against ₹25,926 in March and ₹25,999 in February. But why are so many investors discontinuing their SIPs?
| Month | No of discontinued SIPs |
|---|---|
| April | 1.62 crore |
| March | 51.55 lakh |
| Feb | 54.7 lakh |
| Jan | 61.33 lakh |
What experts say?
Siddharth Alok, AVP, Investments, EpsilonMoney, says, “A lot of new investors have entered markets post 2020. Since markets have been on a secular bull run in the last 5-years, a few of us might be having unreasonable expectations. We should understand in the last 5-years, Nifty 500 is up 25.7 per cent CAGR, while in the last 10-years it is only up 13.9 per cent CAGR. While 14 per cent CAGR over long term is equally impressive, we must tone down our future return expectations.”
“For investors the most important virtue should be to stay put. The ongoing relief rally especially in the SMID space is an opportunity to rebalance your asset allocation & focus long-term,” adds Alok.
Sridharan Sundaram, Founder of Wealth Ladder Direct, dismisses the idea that investors are discontinuing their SIPs because of market movement.
“Earlier, we did not have the concept of perpetual SIPs. So, those who started their SIPs three years ago or five years ago have now been discontinued. This has nothing to do with the market movement. Moreover, total SIP contribution has not fallen. So, this shows that overall sentiment for continuing SIPs is not negative,” says Sridharan.
Chethan Shenoy, Executive Director and Head, Product & Research, Anand Rathi Wealth echoes similar sentiments as he says that the recent rise in SIP discontinuations is not a sign of panic but of progress.
“What we are witnessing is a new generation of investors maturing. Many have stayed invested through volatile markets, and now, having reached their financial goals, they are exiting with discipline and intent. This isn’t about losing faith in mutual funds and so does the SIP monthly inflows data resonates.SIP inflows touched an all-time high of ₹26,632 crore,” says Mr Shenoy.
“In fact, several investors are simply rebalancing their portfolios or shifting between schemes for better alignment, which is a sign of growing financial literacy,”
“We must also factor in that SIPs have finite tenures. A five-year SIP started in 2020, for example, has run its course,” he adds.
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