Mutual fund SIP stoppage ratio rises to 75% in August

The mutual fund SIP stoppage ratio surged to 74.51% in August, up from 62.66% in July and 57.15% in August 2024, indicating that more SIPs were registered than those either stopped or completed their existing tenures.

In August, 41.15 lakh SIPs were discontinued or reached the end of their tenure, while 55.23 lakh new SIPs were registered during the same period. In comparison, July saw 43.04 lakh SIPs discontinued or completed, with 68.69 lakh new SIPs registered.

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“Equity funds recorded net inflows of Rs 33,430 crore, marking the 54th consecutive month of positive flows. Categories such as flexi-cap, mid-cap, and small-cap funds continued to see strong participation, with mid-cap funds registering their highest-ever monthly inflows,” said Venkat N Chalasani, Chief Executive, AMFI.

“SIPs too remained a consistent driver of retail participation, contributing Rs 28,265 crore during the month, with SIP AUM now exceeding Rs 15.18 lakh crore across 8.99 crore contributing accounts,” he added.

“These steady flows across equity, hybrid, passive funds, and SIPs underscore investors’ continued confidence in mutual funds as a long-term wealth creation avenue. As an industry, we remain focused on strengthening awareness, encouraging disciplined investing, and ensuring that India’s savers benefit from the transparency and robustness of the mutual fund framework,” he further noted.

In August, the total number of outstanding SIP accounts stood at 959.04 lakh, while contributing SIP accounts numbered 898.70 lakh. SIP contributions for the month were recorded at Rs 28,265 crore, slightly lower than July’s Rs 28,464 crore, marking a marginal 1% decline on a monthly basis.

What is the SIP stoppage ratio?

The SIP stoppage ratio measures the number of discontinued SIPs relative to newly registered SIPs. A ratio above 100% indicates that more SIPs are being stopped than initiated.

However, it’s important to note that the stoppage ratio also includes SIPs that have naturally expired. Additionally, investors may have switched from one SIP to another as part of portfolio rebalancing.

Retail mutual fund folios (Equity + Hybrid + Solution Oriented Schemes) stood at 1,96,401,310 in August 2025, up from 1,94,195,038 in July 2025. Retail AUM for the same segment was Rs 43,75,824 crore in August, slightly down from Rs 43,90,919 crore in July 2025.

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The SIP AUM stood at Rs 15.18 lakh crore in August 2025, representing 20.2% of the total mutual fund industry’s assets. Mutual fund folios reached 2,48,909,424 in August, up from 2,45,724,339 in July 2025. The AAUM for August 2025 was recorded at Rs 76,71,481.90 crore.

“The resilience in August flows can largely be attributed to sustained momentum through Systematic Investment Plans (SIPs), which continued to see strong monthly contributions. Retail investors, in particular, remained consistent in their allocations, undeterred by global volatility,” said Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research India.

“Additionally, growing optimism around India’s economic outlook, aided by reforms such as GST rationalization and expectations of corporate earnings recovery, further supported domestic equity flows. Market volatility and intermittent corrections also created attractive entry points for investors, encouraging fresh investments during the month,” Srivastava added.