Mutual fund SIP stoppage ratio spikes to 123% in February

In February, the number of SIPs discontinued or completed stood at 54.70 lakh, while the number of new SIPs registered was 44.56 lakh.

For the first 11 months of the current financial year, the SIP stoppage ratio was recorded at 72.32%, with 462.62 lakh SIPs discontinued and 639.66 lakh new SIPs registered. In contrast, the stoppage ratio for FY24 was 52.41%, according to data from the Association of Mutual Funds in India (AMFI).

The SIP stoppage ratio is the number of discontinued SIPs compared to newly registered SIPs. A ratio exceeding 100% suggests that more SIPs are being stopped than started. However, it is important to note that this also includes SIPs that have completed their tenure, and investors may have shifted from one SIP to another as part of a portfolio reshuffle.

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According to AMFI’s monthly data, mutual fund SIP inflows dropped by nearly 2% to Rs 25,999 crore in February, compared to Rs 26,400 crore in January and Rs 26,459 crore in December.

The SIP AUM stood at Rs 12,37,783.57 crore in February 2025, with 8.26 crore contributing SIP accounts.

As of February 2025, total mutual fund folios stood at 23,22,80,804, while retail MF folios (Equity + Hybrid + Solution-Oriented Schemes) were 18,42,02,267, up from 18,22,23,078 in January.

The retail AUM (Equity + Hybrid + Solution-Oriented Schemes) stood at Rs 36,44,112 crore in February 2025, compared to Rs 38,77,595 crore in January 2025.

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“The Indian mutual fund industry continues to demonstrate resilience, with consistent investor participation across categories. Despite market fluctuations, net inflows stood at Rs 40,063 crore, reflecting investor confidence in long-term wealth creation,” said Venkat Chalasani, Chief Executive, AMFI.

“The decline in overall AUM from January to February was primarily due to mark-to-market losses in equity funds. However, SIP contributions remained steady, highlighting continued investor preference for systematic investments,” he added.

AMFI remains committed to investor education and awareness, promoting financial discipline across market conditions, Chalasani further stated.

Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India), noted: “The decline in SIP inflows is not significant, partly due to February being a shorter month. I believe investors should continue their SIPs, as this is a great time to accumulate units.”