According to a report by brokerage firm Elar Capital, for the first time since 2022, the industry has shut down in the systematic investment plan (SIP) accounts in March 2025.
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| Name of the scheme | 1-year back | Invest now | Fund category | expense ratio |
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| Axis Nifty 50 Index Fund | +32.80% | Invest now | Equity: Big Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest now | Equity: Big Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest now | Equity: Big Cap | 0.25% |
| Axis Nifty 500 Index Fund | , | Invest now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest now | Equity: Mid Cap | 0.28% |
The recent data released by the Association of Mutual Funds in India (AMFI) also revealed that about 51 lakh SIPs were closed during the month, leading to the SIP stoppage ratio to 127.5%.
The spike in the closure reflects the anxiety of the investor, which began during the covid investment bounce, in addition to the natural maturity of SIP, amidst the ongoing market volatility.
Nevertheless, financial advisors say SIP is a strong long -term investment strategy.
Experts noted that these financial instruments have shown flexibility through the recession of the previous market and the benefits of the rupee average – to buy more units when the prices are low.
Why is market instability not always bad for SIP investors?
Rajesh Sinha, Senior Research Analyst of Bonanza Group, says, “Volatility is an inherent feature of equity markets.” “When the markets fall, SIPs allow investors to buy more units on low net asset value (NAV), which improves profit capacity when the market recovers.”
Prasanna Pathak, managing partner of wealth company, agrees with this Sinha’s perspective. According to him, when the markets are below, the actual benefits of the SIPS become clear through the power of the cost average, as it enables investors to acquire more units at a lower price. It is important for investors to continue their SIPs during the market fall, as they would mean to recall major benefits such as compounding, a disciplined investment approach and the possibility of market recovery.
Pathak believes that by sticking to his SIP strategy, investors can avoid emotional prejudices and take themselves in position to benefit themselves when the market rebounds.
While short-term fluctuations can motivate retail investors to stop or stop their SIPs, industry giants take precautions against such steps. Gaurav Goel, founder-director of Fenocrat Technologies, said, “Stopping or dropping SIP during reform is like breaking your shield during a fight.” “It is discipline and patience that create long -term values.”
In SIP flow, mutual funds have played an important role in running retail participation, which provides a stable cushion for equity markets. However, recent instability – has been powered by global uncertainty, interest rate movements and domestic evaluation concerns – has tested the investor spirit.
Nevertheless, fund managers say that broad basic things remain intact. “The temporary recession does not derail the long-term economic trajectory. India’s demographic dividend, increasing consumption, and structural reforms make equity an attractive asset class-especially when entering a low evaluation,” the viral bhatt, founder of the money mantra, says a personal finance advisor.
The current trend in SIP closure comes after a strong run in 2023 and 2024, when the monthly SIP contribution in December 2024 hit a record high, touched ₹ 19,000 crore in December 2024.
Experts believe that the recent bounce in the closure can also be partially due to the tenure of SIP, which is ending after the five-year lock-in of the after-time after the Kovid investment.
Long term money solution
Partner managing partner Vishn Narayan at Pulsar Capital said, “Even with the growth of stoppage, SIPs are one of the most effective equipment for long -term money.” Narayan said that SIPs remove the need to give time to the market and promote disciplined investment, which is particularly important in unstable time.
While the investor’s concern makes sense, analysts say that SIPs can be left out on the basis of short -term market movements.
