As per data released by the Association of Mutual Funds in India, the Systematic Investment Plan (SIP) stoppage ratio in India’s mutual fund industry rose slightly to 75.62% in February. This is up from 74.83% in January.
The stoppage ratio of SIP shows how many of the SIPs were stopped as compared to how many new SIPs were started during the month.
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Fewer SIPs Stopped, But New Registrations Fell More
In February, about 49.70 lakh SIPs were discontinued or completed their tenure, while 65.72 lakh new SIPs were registered.
However, the number of SIPs that were discontinued or completed was 55.46 lakh in January, with new registrations touching 74.11 lakh.
Even though fewer SIPs were stopped in February, the stoppage ratio increased because the number of new SIPs registered dropped more sharply.
Many experts said that having a high stoppage ratio does not mean that the investors are leaving mutual funds. Some SIPs simply end after completing their investment period, while others are shifted to different schemes as part of portfolio changes.
Monthly SIP contributions also fell slightly in February. SIP inflows stood at ₹29,845 crore, down 4% from ₹31,002 crore in January. This means SIP inflows dropped below ₹30,000 crore after staying above that level for two months.
However, industry experts say the decline was partly because February has fewer days. SIP instalments scheduled for the 29th, 30th and 31st are usually processed in early March, which can shift some contributions to the next month.
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Strong Interest from New Investors
According to Ankur Punj, Managing Director and Business Head at Equirus Wealth, SIP inflows remained strong in January and matched December’s record levels. He said the growth has been driven mainly by young investors (Gen Z), women investors, and people from Tier-2 and Tier-3 cities.
Nikunj Saraf, CEO of Choice Wealth, said SIPs continue to show strong investor confidence. He added that disciplined investing through SIPs is becoming an important part of India’s savings habits, although investors should remain cautious in the short term due to market conditions.
SIP Investments Still Higher Than Last Year
Despite the small monthly drop, SIP inflows were still 15% higher than last year.
- February 2026 SIP inflows: ₹29,845 crore
- February 2025 SIP inflows: ₹25,999 crore
The number of active SIP accounts also remained high at 9.44 crore in February 2026.
Moreover, the retail investor participation also increased. The number of retail mutual fund accounts in equity, hybrid and solution-oriented schemes reached 20.64 crore in February, up from 20.43 crore in January. Retail assets under management (AUM) in these schemes stood at ₹47.14 lakh crore.
Venkat Chalasani said the February SIP inflows of ₹29,845 crore show that investors still trust SIPs as a simple and disciplined way to invest for the long term, even though contributions were slightly lower because of the shorter month.
