Want To Stop Your SIP? Experts List 5 Situations When It Is Right To Do So

The popularity of Systematic Investment Plans (SIPs) has surged over the past few years, becoming one of the most preferred routes for retail investors to enter the mutual fund market. Yet, recent data shows a growing trend of investors opting to discontinue their SIPs, and experts say, in certain situations, that may not be a bad decision.

According to data from the Association of Mutual Funds in India (AMFI), about 44.03 lakh SIPs were closed in September 2025, while 41.15 lakh SIPs were stopped in August 2025, marking an increase of nearly 7% month-on-month.

In comparison, 40.31 lakh SIPs were discontinued in September last year. The trend suggests that more investors are reassessing their investment strategies amid market volatility and changing

personal financial needs.

Month-wise data shows a consistent fluctuation:

June 2025	48.16 lakh SIPs closed
July 2025	43.04 lakh SIPs closed
August 2025	41.15 lakh SIPs closed
September 2025	44.03 lakh SIPs closed

While most financial planners advise against halting SIPs midway, especially when markets are underperforming, some scenarios justify such a move.

Financial experts point out five valid reasons why stopping an SIP can be a rational decision rather than a hasty one.

1. Financial goals achieved: Once an investor has met a specific investment target, there is no harm in discontinuing the SIP. Continuing to invest in the same fund may no longer serve a strategic purpose.

2. Portfolio diversification: Investors may choose to pause a large SIP and redirect the funds into smaller SIPs across varied schemes to better balance their portfolio.

3. Course correction: If an investor realises that a particular fund was not aligned with their goals, stopping the SIP and using a Systematic Transfer Plan (STP) to move the corpus to a better-suited scheme can be prudent.

4. Poor-performing sectoral funds: Holding onto a loss-making sectoral fund for too long may not be wise. Shifting to broader market or index funds can help reduce risks.

5. Financial emergencies: In times of crisis, such as unexpected medical expenses or job loss, halting an SIP temporarily can ease liquidity pressure.

Experts stress that SIPs are designed for long-term wealth creation, but personal circumstances and market dynamics can change. “It’s not about never stopping your SIPs, it’s about knowing when and why to stop them,” said a Mumbai-based wealth advisor, adding that the key ws to make informed decisions with professional guidance rather than acting on impulse.