New SIP registrations fall to 12-month low as closures outpace additions for second straight month

For the second straight month, more systematic investment plans (SIPs) were discontinued than newly registered, even as monthly contributions remained above ₹30,000 crore.

Around 50.71 lakh new SIPs were registered during April — the lowest monthly addition in the past 12 months — while 51.29 lakh SIPs were discontinued.

In March, 52.82 lakh SIPs were registered against 53.38 lakh discontinuations.

According to data from Association of Mutual Funds in India (AMFI),

the SIP stoppage ratio stood at 101% in April, indicating that closures exceeded fresh registrations for the second consecutive month.

Despite the elevated stoppage ratio, SIP contributions remained resilient at ₹31,115 crore in April, marking the fourth instance of monthly inflows remaining above ₹30,000 crore.

The trend comes amid heightened global and domestic market volatility driven by geopolitical tensions and uncertainty around market direction. After declining 11.3% in March, the benchmark Nifty 50 recovered partially with a 7.5% gain in April.

At the end of April, SIP assets under management stood at ₹16.85 lakh crore, accounting for 20.6% of the mutual fund industry’s total AUM. The number of contributing SIP accounts stood at 9.65 crore. Between May 2025 and February 2026, the average SIP stoppage ratio was around 75%.

While a stoppage ratio above 100% may appear concerning, it is not unprecedented. The ratio first crossed the 100% mark in January 2025 and remained elevated in subsequent months. April 2025 had seen a sharp spike to 353%, largely due to back-dated folio pruning and clean-up of dormant accounts rather than panic-driven investor exits.

The higher stoppage ratio reflects multiple factors, including cautious sentiment among new investors amid volatile markets, portfolio rebalancing by existing investors, and shifting investments between schemes rather than complete exits from mutual funds.

A SIP stoppage ratio measures discontinued SIPs relative to new SIP registrations in a given month. A ratio above 100% indicates that more SIPs were discontinued than added.