Mutual Fund SIP Discontinuations: 43.18 Lakh Investors Stop in November 2025
November 2025 saw 43.18 lakh SIP discontinuations, down from October's 45.10 lakh, while monthly contributions declined to ₹29,445 crore. Investors stop SIPs due to fund exits, tenor completion, goal achievement, underperformance, or emergencies. Financial experts advise against pausing SIPs to maintain rupee cost averaging benefits, especially during market corrections.
*this image is generated using AI for illustrative purposes only.
Systematic Investment Plans (SIPs) in mutual funds experienced notable discontinuations in November 2025, with 43.18 lakh SIPs being stopped or completed during the month. This figure represents a decline from the previous month's 45.10 lakh discontinuations, though it remains elevated compared to earlier months in the period.
SIP Discontinuation Trends
The data reveals fluctuating patterns in SIP discontinuations over recent months. The following table illustrates the monthly progression:
| Month: | SIPs Discontinued (in lakh) |
|---|---|
| August: | 41.15 |
| September: | 44.03 |
| October: | 45.10 |
| November: | 43.18 |
These figures include both voluntary discontinuations and SIPs that reached their predetermined tenor completion. The November decline from October's peak suggests some stabilization in discontinuation rates.
Contribution Decline Accompanies Discontinuations
Alongside the discontinuation trends, SIP contributions also experienced a marginal decline in November 2025. Monthly contributions dropped to ₹29,445.00 crore from ₹29,529.00 crore in October, marking an unusual decrease in what typically shows consistent monthly growth patterns.
Common Reasons for SIP Discontinuation
Investors choose to discontinue their SIPs for several specific reasons:
- Fund exit decisions: When investors identify better alternative investment opportunities
- Tenor completion: Upon reaching predetermined investment periods, such as three-year commitments
- Goal achievement: When investors have successfully met their targeted financial objectives
- Performance concerns: Following consistent fund underperformance that exhausts investor patience
- Emergency requirements: Urgent cash needs that necessitate stopping regular investments
Expert Advice Against SIP Pausing
Financial advisors consistently recommend against discontinuing SIPs, emphasizing the disruption to rupee cost averaging benefits. Preeti Zende, Founder of Apna Dhan Financial Services, explains that pausing SIPs is not advisable, particularly for equity mutual fund investments targeting long-term goals.
"If you are investing in equity mutual funds towards your long-term goals, a market correction is typically the best time to continue your SIPs and buy more units. This helps you to increase portfolio value once the market starts recovering," Zende states.
Impact on Investment Strategy
The practice of discontinuing SIPs undermines the fundamental advantage of systematic investing through rupee cost averaging. This strategy allows investors to purchase more units during market downturns and fewer units during peaks, potentially optimizing long-term returns. Maintaining consistent SIP contributions, especially during market corrections, positions investors to benefit from eventual market recovery phases.
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