Mutual Fund: on SIP inflow record, but still a large number of investors shut down SIP, what is the reason?

Systematic Investment Plan is considered a reliable way for those who invest in mutual funds. Investing a fixed amount every month provides good returns in the long term. But the latest figures of the Association of Mutual Funds in India i.e. AMFI are telling something else.

In April 2025, the number of SIP closure crossed 1.62 crores, which is three times higher than the previous months. 51.55 lakh SIP was closed in March, 54.7 lakhs in February and 61.33 lakhs in January.

So are investors losing trust with mutual funds?

it’s not like that at all. The interesting thing is that despite the closure of SIP, the amount to be invested every month is increasing continuously. SIP inflow stood at Rs 26,632 crore in April, which is more than March (Rs 25,926 crore) and February (Rs 25,999 crore).

This means that investors are continuing to put money in SIP, but some are also shutting down SIPs.

What are experts saying?

Livemint In a report of Siddharth Alok, AVP, Investments, Epsilonmoney, said in the conversation that, “Since 2020, many new investors have come in the market. In the last 5 years, the market has given good returns in the last 5 years, which has increased many people’s expectations. But we have to understand that in 5 years, Nifty 500 has given 25.7% Cagr, while it has been an over 13.9% in 10 years. That is, 14% CAGR in the long term is also excellent, but we should keep our expectations realistic. “

He also said that “It is the right opportunity for investors who are getting out of SIP to rebel their portfolio and focus on long term planning.”

SIP shutting does not mean nervousness, but maturity

Sreedharan Sundaram, Founder, Wealth Ladder Direct, said that the shutdown of SIP does not mean that investors are nervous. Actually, earlier there was no convenience of permanent SIP, and the SIP that started three or five years ago is now ending on its own. SIP inflow is constantly increasing, which shows that the trust of investors is still intact.

Chetan Shenoy, Executive Director and Head of Product and Research, Anand Rathi Wealth, says that SIP should not be looked at from the wrong perspective. He said, “Investors have now become more matured. Many people have also made investment in the volatile market and now when their financial bums have been completed, they are also out of the SIP.

He told that some people are changing the scheme or doing portfolio rebelnes, which shows that now the financial understanding of investors is increasing.

Some SIP deadline was also completed

SIP begins for a fixed tenure such as 3 years or 5 years. The SIP that started in the year 2020 is now being completed in 2025. In such a situation, if a SIP is being closed, then it is not necessarily related to the market, this is a normal process.

What should investors do?

If your SIP is completed, there is no need to panic. You can start SIP again by looking at your financial goals or change the scheme. Along with this, keep planning for long term investment and should not be affected by short term fluctuations.

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