Systematic Investment Plan (SIP) inflows reached unprecedented levels in December, with monthly contributions surging to a record ₹31,002 crore, demonstrating the growing appeal of disciplined investing among retail participants. This represents a substantial increase from the ₹29,445 crore recorded in November, highlighting the sustained momentum in systematic investing.

SIP Account Growth and Participation

The number of contributing SIP accounts expanded to 9.79 crore in December, compared to 9.43 crore in November, reflecting steady growth in retail participation across the mutual fund industry. This growth underscores the increasing adoption of systematic investing as a preferred investment strategy among Indian investors.

New Registrations and Discontinuations

During December, the industry witnessed robust demand with 60.46 lakh new SIPs being registered, higher than the 57.13 lakh SIPs registered in November. However, the month also saw 51.57 lakh SIPs being discontinued or reaching maturity, compared to approximately 43 lakh SIPs in the previous month.

This dynamic pushed the headline SIP stoppage ratio to approximately 85% in December, significantly higher than the 75.56% stoppage ratio recorded in November. The stoppage ratio indicates how many SIPs stopped or matured compared to newly registered SIPs in a given month.

Understanding the True Discontinuation Rate

AMFI provided crucial clarity on the composition of SIP closures in December. Of the total SIP closures, around 33 lakh were genuine discontinuations, while nearly 18.6 lakh SIPs reached their natural maturity. When considering only discontinued SIPs, the adjusted stoppage ratio moderates to approximately 55%, offering a more accurate reflection of actual investor churn.

Assets Under Management and Industry Performance

SIP assets under management reached ₹16.63 lakh crore, representing 20.7% of the mutual fund industry's total assets. This substantial allocation demonstrates the significant role systematic investing plays in the overall mutual fund ecosystem.

On the equity side, mutual fund inflows moderated marginally to ₹28,054 crore in December, declining approximately 6% from ₹29,911 crore in November, amid market volatility and global headwinds. The overall industry assets under management stood at ₹80.23 lakh crore in December, slightly lower than ₹80.7 lakh crore in November.

The record SIP inflows in December underscore the resilience of systematic investing even during periods of market uncertainty, with retail investors continuing to demonstrate confidence in long-term wealth creation through disciplined investment approaches.

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:

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.