SIP Stoppages Ratio Hit Record Highs 2025: What to do Next?
Every time the markets take a hit, the same question comes up—"Is this time different?"
Right now, the market is covered under the news; March witnessed 51 lakh SIP discontinued, which has led the stoppage ratio to hit a record high in 2025 of 127.5%, surpassing the new SIP registrations.
Headlines scream panic, portfolios turn red and the temptation to react is stronger than ever.
But if history has taught us anything, it’s this: Staying invested wins.
On this note, let’s see what your next step is amidst everyone wanting to stop their SIPs, “What is the right thing to do?” Let’s find out
What is the SIP Stoppage Ratio & Why Should You Care?
The SIP stoppage ratio defines the number of discontinued SIPs (Systematic Investment Plans) compared to newly registered SIPs. If the ratio is over 100%, it means more SIPs are stopped than the ones being opened.
For example, in March 2025, the SIP stoppage ratio surged to crazy levels and reached 127.5%. This shows that for every new 100 investments, around 127 SIPs were closed.
Now, why does it happen? It is simple, the rise in this ratio means that their is fear in the market and the investors sentiments have changed from active investing to caution.
But to remind, “Why should you care about SIP stoppage?” Here are some points to be noted:
- A high SIP stoppage ratio can denote that a large number of investors are losing confidence in specific funds.
- You may need to re-evaluate your investment strategy if you too are thinkingto stop your SIP.
- It can be a good opportunity to learn about new potential opportunities in the market.
March 2025: A Record-breaking SIP Stoppage Month
In March 2025, 51 lakh SIPs were discontinued, while only 40 lakh new SIPs were registered, as recorded by the Association of Mutual Funds in India (AMFI) data.
This record-breaking SIP stoppage ratio makes it the 3rd consecutive month where more systematic investment plans were closed or stopped than opened.
The table below compares the data from the start of this fiscal year to date:
| Month | SIP Stoppage Ratio |
|---|---|
| Jan-25 | 109.15% |
| Feb-25 | 122.76% |
| Mar-25 | 128.27% |
This trend is a cause for concern, especially for mutual fund managers and investors who have relied on SIPs as a steady means of wealth creation.
But, “What is behind this surge in SIP stoppages?” Let's cover that in the next heading.
Why are More Investors Stopping their SIPs?
The Association of Mutual Funds in India (AMFI) has not directly explained why more people are stopping their SIPs but here are a few possible reasons:
- Profit Booking: After the recent rise in market prices, many investors may have decided to take out their profits and stop their SIPs.
- Market Volatility: With the market being unpredictable, some investors may have gotten nervous and paused their SIPs until things calm down.
- SIP Tenure Completion: Some SIPs are set to end after a certain period and this could explain why some people are stopping theirs.
- Changing Financial Goals: Life events like a job change, an emergency or a need for cash could make some investors stop or withdraw their investments.
In light of the buzz around SIP Stoppage ratio, Mr Venkat Chalasani, Chief Executive (AMFI) said, "The decline in overall AUM from January to February was mainly because of market-to-market losses in Equity Funds. However, SIP contributions remained steady, highlighting continued investor choosing for systematic investments. "
SIP Inflows: Still Holding Steady
Even with high stoppage ratios, SIP inflows remain steady. March's total inflows stood at Rs25,926 crores just 0.28% down from February. This shows that although more investors may be closing their SIPs than investing, overall investment remains relatively steady.
New SIP registrations also showed a decrease, with only 40.18 lakh new SIPs being registered compared to 44.56 lakh in February 2025.
This suggests an increasing caution among retail investors who may be reconsidering their approach to mutual fund investments.
The bigger Picture: Portfolio Reallocation
While SIP closures are rising, it is worth noting that mutual fund folio growth continues on an upward trend:
A total of 23.45 crores mutual fund folios rise were recorded in March, whereas the record shows 23.32 crore folios till February 2025.
Retail folios (Equity, hybrid and solution-oriented schemes) also grew to 18.58 crore in March from 18.42 crore in February.
This shows that even though, there is an increase in SIP stoppage ratio, long term investors are reallocating their portfolios instead of stopping their mutual funds investments altogether.
How to Navigate SIP Stoppage Trend & Stay on Track?
It is easy to get caught up in market trends but if you want to build wealth over the long term, it is important to stay consistent and plan strategically. Here’s how you can stay on track:
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Stick to Your SIPs, Even During Market Drops
Market dips are part of investing but they can also be opportunities. If you keep investing in your SIPs during these times, you can buy more units when prices are lower. This could lead to better returns when the market eventually recovers.
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Diversify Your Portfolio
Do not put all your money into one type of investment. By spreading your investments across both equity and debt funds, you can reduce risk while aiming for better returns. A mix of different assets will help you deal with short-term market changes and give you steady growth over time.
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Review Your Financial Goals
The market might seem confusing but it’s important to regularly check if your investments are still aligned with your goals. Whether you’re saving for retirement, a major purchase or your child’s education, make sure your SIPs reflect those goals. If needed, adjust your strategy but do not make quick decisions based on market noise.
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Think Long-Term
SIPs are about building wealth over time. Stick to your plan and let your investments grow with compounding. Do not let short-term market ups and downs change your long-term goals.
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Stay Calm & Keep Following Your Plan
Stopping your SIPs during uncertain times can lock in losses. Stay disciplined and keep your SIPs going. The market will eventually recover and by staying invested, you will be ready to take advantage of those rebounds.
Conclusion- Should You Stop Your SIP Investment?
In short, this market crash has left confused every investor with this same questions, "Should you stop SIP investment or let it continue?”
However, it is noteworthy that markets have crashed before and they’ve always recovered. And investors who stayed the course have built serious wealth, not by timing the market but by staying in it.
“The challenge is staying confident when emotions take over. That’s where the right insights matter.”
All in all, experts suggests that this market dip is temporary and good opportunity for SIP investors specially as you can leverage this fall to your advantage by making additional purchase because at this time, you will be able to buy more units at a low price which will give you compounding benefit in the long term.
