India’s SIP stoppage ratio crossed 100% for the first time in 11 months, as market volatility and negative short-term returns led investors to pause or exit investments.

The Systematic Investment Plan stoppage ratio last month crossed 100 per cent for the first time in the last 11 months, as volatile markets made investors jittery, with one- and two-year SIP returns turning negative in the last few months.

The number of SIP accounts stopped or matured increased to 53.38 lakh, against 52.82 lakh new SIP accounts opened last month, according to Association of Mutual Funds of India data.

Interestingly, the SIP stoppage ratio in February was 76 per cent, with 49.70 lakh accounts stopped, while 65.72 lakh new accounts opened.

Market fall triggers investor panic

Jeevan Kumar KC, Head - Investment Advisory Services, Geojit Financial Services, said markets over the last two months have dipped 16 per cent, leading to widespread SIP stoppages as investors panicked amid returns from popular SIP categories such as small, mid and flexi caps dwindling over a one- to two-year time frame.

Investors should stay calm and aim to accumulate more units during bad times to reap the real benefit of compounding in inevitable bear markets, he added.

Annual trends and regulatory impact

In the financial year ending March, the stoppage ratio has hit a new high of 95 per cent, as the industry closed 162.32 lakh accounts last April, as per SEBI’s direction to shut down accounts that had remained paused for three consecutive months.

In FY25, the stoppage ratio in the industry was 76 per cent, with 514.17 lakh accounts closed and 679.85 lakh accounts opened.

Despite the stoppage, SIP inflows increased 21 per cent last fiscal to ₹3.50 lakh crore, up from ₹2.89 lakh crore in FY’25.

Outlook remains positive despite volatility

However, markets have shown positive signs since the start of this month, with early signs of peace returning in West Asia.

Aditya Agrawal, Chief Investment Officer at Avisa Wealth Creators, said the rise in the SIP stoppage ratio reflects short-term volatility and some investors pausing contributions amid recent market corrections, rather than a structural slowdown in systematic investing.

The recent market rebound may be followed by intermittent volatility, but India’s structural growth story and earnings trajectory remain supportive. For long-term investors, staying invested through SIPs during corrections often improves average purchase cost and future return potential, he added.

Published on April 18, 2026