New SIP Registrations Drop to 12-Month Low in April 2026 Amid Rising Closures

Fresh registrations under Systematic Investment Plans (SIPs) fell to a 12-month low in April, while discontinuations continued to remain higher than new additions for the second month in a row. 

Data released by the Association of Mutual Funds in India (AMFI) showed that 50.71 lakh SIPs were registered during April, compared with 51.29 lakh SIP closures. In March, 52.82 lakh SIPs had been registered, while 53.38 lakh accounts were discontinued. 

Stoppage Ratio Remains Above 100% 

The SIP stoppage ratio stood at 101% in April. The ratio measures discontinued SIPs against fresh registrations during a month. A figure above 100% indicates that more SIPs were closed than opened. 

The stoppage ratio had first crossed the 100% level in January 2025 and has remained elevated in several months since then. In April 2025, the ratio had risen sharply to 353%, mainly due to the clean-up of dormant and inactive folios by fund houses. 

Between May 2025 and February 2026, the average SIP stoppage ratio remained around 75%. 

Monthly Contributions Stay Above ₹30,000 Crore 

Despite lower registrations, monthly SIP inflows continued to remain strong. SIP contributions stood at ₹31,115 crore in April, marking the fourth time that monthly inflows crossed the ₹30,000 crore level. 

At the end of April, SIP assets under management were recorded at ₹16.85 lakh crore. SIP assets accounted for 20.6% of the mutual fund industry’s total Assets Under Management during the month. 

The number of contributing SIP accounts stood at 9.65 crore at the end of April. 

Volatility Influences Investor Activity 

The trend in registrations and closures comes during a period of market volatility linked to global geopolitical tensions and uncertainty around equity markets. 

The benchmark Nifty 50 declined 11.3% in March before recovering 7.5% in April. 

Industry data also indicates that higher stoppage ratios may reflect portfolio reshuffling, movement between schemes and cautious participation from new investors, rather than a complete withdrawal from mutual funds. 

Read More: India Secures Record 1.35 Million Tonnes DAP Import Amid Supply Concerns! 

Conclusion 

While SIP discontinuations continued to exceed fresh registrations in April, contribution levels remained above ₹30,000 crore. Total SIP assets and contributing accounts also stayed elevated despite market volatility 

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