Investing is usually done with a long-term goal in mind. Many people choose mutual funds to build wealth slowly over time. One of the most common ways to invest in mutual funds is through a Systematic
Investment Plan, or SIP, where a fixed amount is invested every month.
Financial advisors often suggest sticking to SIPs through good and bad market phases. Still, in real life, many investors either stop their SIPs midway or end them once a chosen period is over. This raises an important question about how common it is to pause SIPs and whether it is the right move.
SIP Stoppages Are More Common Than You Think
As per Livemint, recent data shows that a large number of SIPs are being stopped every month. In August 2025, around 41.15 lakh SIPs were discontinued or completed. The number increased to 44.03 lakh in September and rose further to 45.10 lakh in October. In November last year, about 43.18 lakh SIPs were discontinued.
These figures include SIPs that were stopped early as well as those that ended because their set period was completed. There was also a slight dip in overall SIP investments. In November 2025, SIP contributions stood at Rs 29,445 crore, according to Livemint.
This was lower than October’s Rs 29,529 crore. Usually, SIP investments tend to rise month after month, which made this drop noticeable.
Why Investors Choose To Stop Their SIPs
There are several reasons why investors pause or stop their SIPs. Some people stop investing when they want to exit a fund and move their money to a better option. Others stop because they had chosen a fixed time frame, such as three years, and that period is now over.
Some investors pause their SIPs after reaching a financial goal they were saving for. In other cases, a fund may perform poorly for a long time, causing investors to lose patience. Emergencies also play a role, as sudden financial needs may force people to stop their SIPs to access cash.
Why Experts Advise Against Stopping SIPs
Even though SIP stoppages are common, wealth advisors often warn investors against doing so. One major reason is that stopping a SIP breaks the benefit of rupee cost averaging, which helps investors buy more units when markets fall and fewer when markets rise.
“Pausing your SIPs is not a good step. 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,” Preeti Zende, Founder of Apna Dhan Financial Services told Livemint.
