SIP Stoppage Ratio: According to Association of Mutual Funds in India (AMFI) data, October 2026 witnessed a significant shift in mutual fund investments through Systematic Investment Plans (SIPs). After declining for five consecutive months, the SIP stoppage ratio surged to 115.7 per cent in October, up from 78.5 per cent in September. This means that for every 100 new SIP registrations, around 116 existing SIPs were discontinued or reached the end of their tenure. It is important to note that new SIP registrations declined during this period despite signs of recovery in the stock market.
How many SIPs were discontinued and how many new SIPs were added in October?
In October 2026, approximately 5.9 million SIPs were discontinued or reached the end of their investment tenure, while around 5.1 million new SIP registrations were recorded. As a result, the SIP stoppage ratio rose to 115.69 per cent.
In comparison, September saw approximately 4.968 million SIPs discontinued or completed their tenure, against 6.326 million new registrations. The SIP stoppage ratio stood at 78.53 per cent during the month.
New SIP registrations declined by approximately 19.4 per cent month-on-month in October, while the number of SIPs that were discontinued or completed their term increased by approximately 18.8 per cent. Both factors led to the SIP stoppage ratio suddenly crossing 100 per cent after five months of decline.
SIP Stoppage Ratio: From 78.53% in September to 115.69% in October
The SIP stoppage ratio declined consistently from 101.14 per cent in April 2026 to 95.46 per cent in May, 91.23 per cent in June, 81.87 per cent in July, 81.05 per cent in August and 78.53 per cent in September. However, it reversed this trend sharply in October, rising to 115.69 per cent.
What is SIP stoppage ratio?
What does it mean for mutual fund investors?
The SIP stoppage ratio measures the number of SIPs that are closed or have reached the end of their investment period in a given month, compared to the number of new SIPs registered in that month. For example, if 100 new SIPs are registered in a given month and 116 old SIPs are closed or have reached the end of their term, the stoppage ratio would be 116 per cent.
This doesn’t mean that 116 per cent of investors have stopped investing. This ratio is calculated based on the number of SIPs, not the number of investors. An investor can have more than one SIP.
What does a ratio greater than 100% mean?
A SIP stoppage ratio above 100 per cent indicates that more SIPs were closed or their fixed term was completed than the number of new SIPs started that month. In October, this ratio was 115.69 per cent. This means that for every 100 new SIPs, approximately 116 SIPs were closed or matured. However, the SIP stoppage data includes two types of cases: first, when the investor voluntarily stops the SIP. Second, when the SIP’s predetermined term is completed.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)