Mutual Fund SIP Stoppage Ratio Surges to 74.5% in August 2025

The mutual fund SIP stoppage ratio surged to 74.51% in August 2025, climbing from 62.66% in July and 57.15% in August 2024. Despite the rise, the absolute number of new SIPs continued to outpace those stopped or matured, reflecting strong investor interest in mutual funds as a long-term investment avenue.

SIP Stoppage Ratio Increases Amid Higher Registrations

In August 2025, the mutual fund industry reported 41.15 lakh SIPs discontinued or completed as per tenure. Meanwhile, 55.23 lakh new SIP accounts were initiated, making the stoppage ratio 74.51%. For comparison, July 2025 had a higher number of new registrations at 68.69 lakh but also saw more closures at 43.04 lakh, resulting in a 62.66% stoppage ratio. Despite the fluctuations, the net addition remains in favour of new registrations.

SIP Numbers and Contributions Remain Strong

Systematic Investment Plans continued to attract retail investors, with ₹28,265 crore in contributions during August 2025. Although marginally lower than July's ₹28,464 crore, the SIP assets under management (AUM) stood firm at ₹15.18 lakh crore. The total number of contributing SIP accounts reached 898.70 lakh out of the 959.04 lakh SIP accounts registered during the month.

Read More: AMFI Data: Equity Mutual Fund Inflows Decline 22% in August; Sectoral and Thematic Funds See Sharp Drop!

Retail Investor Confidence Remains Steady

The uptick in SIP activity reflects sustained retail investor confidence, even amidst global market uncertainties. The retail mutual fund folios from equity, hybrid, and solution-oriented schemes stood at 1,96,401,310 in August 2025, up from 1,94,195,038 in July. Although the AUM dipped slightly to ₹43,75,824 crore from ₹43,90,919 crore in the previous month, participation remains broad-based across asset classes.

Conclusion

The increased stoppage ratio in August 2025 should be viewed in the context of a large base of registered SIPs and relatively stable investor behaviour. With over 55 lakh new SIPs initiated and nearly ₹28,000 crore in contributions, mutual funds remain a key instrument for India’s retail investors to build long-term wealth.

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