SIPs Surge, But Stops Rise Too: Mixed Signals in India’s Mutual Fund Landscape

Image Source : Outlook Money

India’s mutual fund industry hit a new milestone in June 2025, with monthly SIP contributions crossing Rs 27,269 crore for the first time. However, the SIP stoppage ratio also climbed to 77.77 percent, reflecting a nuanced shift in investor behavior amid market volatility and portfolio reshuffling.

Key Highlights From AMFI Data

- June saw 61.91 lakh new SIP registrations, up from 59.15 lakh in May
- Simultaneously, 48.15 lakh SIPs were discontinued or completed, compared to 42.66 lakh in May
- The SIP AUM rose to Rs 15.30 lakh crore, now comprising 20.6 percent of total mutual fund industry AUM
- Total mutual fund folios reached 24.13 crore, with 8.64 crore contributing SIP accounts—an all-time high
- Retail mutual fund folios (equity, hybrid, solution-oriented) stood at 19.07 crore, up from 18.84 crore in May

Investor Sentiment and Market Dynamics

- The rise in stoppage ratio includes expired SIPs and strategic switches, not just investor exits
- April 2025 saw a technical spike in discontinuations due to SEBI’s retrospective folio clean-up
- Despite the mixed trend, analysts view the inflow strength as a sign of disciplined investing and growing retail trust in equities
- The Rs 100 lakh crore AUM target appears increasingly achievable, driven by SIP momentum and expanding investor base

Outlook

While the stoppage ratio warrants monitoring, the record inflows and rising participation suggest a resilient retail investor class adapting to evolving market conditions.

Sources: Economic Times, AMFI, SAMCO Mutual Fund, Finnovate, Angel One, MSN India, PTI Business Desk, Moneycontrol Markets Desk