SIP Stoppage Ratio Surges 296% in April Despite Record Monthly Inflows

Record-High SIP Inflows Paired with an Unprecedented Stoppage Ratio

April 2025 witnessed a remarkable divergence in India’s mutual fund SIP activity, with monthly inflows through Systematic Investment Plans (SIPs) hitting a record Rs 26,632 crore, even as the SIP stoppage ratio surged to an all-time high of 296%, according to the latest data released by the Association of Mutual Funds in India (AMFI). This implies that the number of SIP accounts closed or matured was almost three times the number of new SIP accounts registered in the same month.

The SIP stoppage ratio is calculated as the ratio of the number of SIP accounts closed or matured to the number of new SIP accounts opened in a given month. In April, about 1.36 crore SIP accounts were stopped, while only 46 lakh new accounts were opened. This imbalance has been building since January, as the stoppage ratio has exceeded 100% for four consecutive months, reflecting a consistent trend of more closures than new registrations.

Highlights:

• April SIP inflows stood at a record Rs 26,632 crore.

• SIP stoppage ratio reached a historic 296%, highest ever.

• Over 1.36 crore accounts closed or matured, only 46 lakh new SIPs registered.

• SIP stoppage ratio has stayed above 100% since January 2025.

AMFI Clarifies: Surge in Closures Driven by Reconciliation of Dormant Accounts

Despite the sharp rise in closures, mutual fund industry experts and AMFI officials have attributed the spike to a data reconciliation process initiated jointly by Registrar and Transfer Agents (RTAs) and stock exchanges, not a structural weakness in retail participation. The process involved identifying and weeding out dormant or non-operational SIP accounts that existed across platforms, many of which had no active investment activity.

AMFI CEO Venkat Chalasani confirmed in an interaction with the media that this reconciliation process was the primary driver behind the spike in the stoppage ratio. He emphasized that this was a temporary accounting adjustment, which concluded in April. As a result, the SIP stoppage ratio is expected to normalize in May and beyond.

Highlights:

• Reconciliation between RTA and exchange platforms led to SIP closures.

• Many SIP accounts had been inactive or dormant and were cleaned up.

• AMFI CEO confirmed that the reconciliation process ended in April 2025.

• Stoppage ratio should drop significantly in upcoming months.

Industry Maintains Positive Outlook Amid Strong Retail Participation

Mutual fund executives and analysts have urged investors and stakeholders not to view the high SIP stoppage ratio in isolation, especially when monthly inflows are at record levels. The Rs 26,000+ crore monthly net inflows seen in April are consistent with similar figures recorded in February (Rs 26,000 crore) and March (Rs 26,100 crore), indicating that retail investor confidence remains robust.

Executives from multiple fund houses have reiterated that actual cash flows were unaffected by the reconciliation-driven stoppages. The removal of inactive accounts, while increasing the stoppage ratio, has no bearing on real-time investment activity or the health of SIP-based flows.

Highlights:

• April was the third consecutive month of Rs 26,000+ crore SIP inflows.

• Fund houses affirm that actual flows remain strong and uninterrupted.

• High stoppage data is purely technical, not indicative of investor pullout.

• Long-term SIP discipline among retail investors remains intact.