SIP contributions rise, but so do cancellations; SIP stoppage ratio jumps to 75% in April 2025 

The latest data from the Association of Mutual Funds in India (AMFI) revealed a significant shift in Systematic Investment Plans (SIPs), with contributions reaching a record Rs 26,632 crore in April 2025. This marks a 3% increase from March's Rs 25,926 crore. 

Despite the surge in contributions, the SIP stoppage ratio soared to 75.63% for the fiscal year 2025, indicating that 514.17 lakh SIPs were discontinued while 679.85 lakh new ones were registered. Notably, the total number of mutual fund folios climbed to 23,62,95,024 in April from 23,45,08,071 in March, showcasing a growing interest in mutual fund investments. 

Venkat Chalasani, Chief Executive of AMFI, noted the sustained growth in SIP contributions: “Systematic Investment Plan (SIP) contributions surged to an all-time high of Rs 26,632 crore in April, driven by a steady increase in the number of contributing accounts, which now total 8.38 crore. This continued growth reflects the rising preference among investors for mutual funds as a disciplined and effective tool for long-term savings.” 

He further highlighted the growing awareness among investors regarding the importance of staying invested and building wealth systematically. 

"While geopolitical developments and border tensions may introduce short-term market volatility, investors are encouraged to stay focused on their long-term financial goals. Reacting impulsively to temporary market movements can derail investment strategies. India's economic fundamentals remain resilient, and the long-term growth outlook continues to be strong and promising,” Chalasani added. 

The SIP Assets Under Management (AUM) saw an increase from Rs 13.35 lakh crore in March 2025 to Rs 13.89 lakh crore in April 2025. Retail AUM for equity, hybrid, and solution-oriented schemes grew to Rs 40,29,311 crore in April, underlining the robust demand for these investment options. Despite market volatility, the number of retail mutual fund folios, including equity, hybrid, and solution-oriented schemes, reached 18,71,05,719 in April. The trend suggests a resilient investor base committed to leveraging mutual funds for long-term financial goals.

The SIP stoppage ratio refers to the ratio of discontinued SIPs to newly registered SIPs. If this ratio surpasses 100%, it suggests that more mutual fund SIPs are being terminated than initiated.

It is important to note that the stoppage ratio includes SIPs that have reached their expiration date. Additionally, some investors may have switched from one SIP to another as part of their portfolio reshuffling.

The ratio of stopped mutual fund SIPs surged to 128.27% in March, up from 122.76% in February. This indicates that more mutual fund investors either halted their SIPs or reached the end of their existing SIP tenures without initiating new investments. In March, the number of SIPs discontinued or completed stood at 51.55 lakh, while the number of new SIPs registered was 40.19 lakh. For the fiscal year 2025, the SIP stoppage ratio was 75.63%, with 514.17 lakh SIPs discontinued and 679.85 lakh new SIPs registered. In the previous fiscal year (2024), the stoppage ratio was 52.41% according to data from the Association of Mutual Funds in India (AMFI).

According to the latest monthly data released by AMFI, the inflows of mutual fund SIPs reached a record high in April, rising by 3% to Rs 26,632 crore compared to Rs 25,926 crore in March.

In April 2025, the total number of retail mutual fund folios, which encompass equity, hybrid, and solution-oriented schemes, stood at 18,71,05,719. In comparison, in March 2025, the number was 18,58,24,290.

The retail Assets Under Management (AUM) for Equity, Hybrid, and Solution-Oriented Schemes in April 2025 totaled Rs 40,29,311 crore. This marked an increase from the March 2025 AUM of Rs 38,83,966 crore.