Mutual fund SIP stoppage ratio slows down to nearly 72% in May

The mutual fund SIP stoppage ratio dropped to 72.12% in May, compared to 297.74% in April and 88.38% in May 2024, indicating that more SIPs were registered than those discontinued or completed.

In May, 42.66 lakh SIPs were discontinued or completed, while 59.15 lakh new SIPs were registered. In contrast, April saw 136.99 lakh SIPs discontinued or completed, with only 46.01 lakh new SIPs registered.

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“The Indian mutual fund industry has crossed Rs 70 lakh crore in AUM, reaching new highs driven by resilient retail participation and consistent SIP inflows. The growth of SIPs is particularly encouraging, indicating a shift towards disciplined, long-term investment,” said Venkat Chalasani, Chief Executive, AMFI.

“Monthly SIP contributions stood at a record Rs 26,688 crore, with the number of contributing accounts rising to an all-time high of 8.56 crore,” he added.

In May, the total number of outstanding SIP accounts stood at 905.57 lakh, while contributing SIP accounts hit an all-time high of 856 lakh. SIP contributions during the month were recorded at Rs 26,688 crore.

What is the SIP stoppage ratio?

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

However, it's important to note that the ratio also includes SIPs that have naturally expired. Additionally, investors may simply be switching from one SIP to another as part of a portfolio reshuffle.

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The SIP AUM stood at Rs 14.61 lakh crore in May 2025, up from Rs 13.89 lakh crore in April 2025.

Retail mutual fund folios (Equity + Hybrid + Solution-Oriented Schemes) rose to 18,84,31,250 in May 2025 from 18,71,05,719 in April. Correspondingly, the retail AUM for these categories increased to Rs 42,19,541 crore in May from Rs 40,29,311 crore in April.

Overall mutual fund folios rose to 23,83,12,770 as of May 2025, compared to 23,62,95,024 in April 2025.

“Gross SIP flows remained steady at Rs 26,688 crore. Amid an uncertain environment and volatility, we urge investors not to panic and to continue investing in a disciplined manner to achieve their long-term financial goals,” said Harshad Patwardhan, Chief Investment Officer at Union Asset Management Company.