SIP contributions rise 17% YoY to ₹31,000cr in January
What's the story
Systematic Investment Plans (SIPs) have shown resilience in the face of market volatility, with monthly contributions remaining consistent at ₹31,002 crore. This is consistent with December's figure but a notable 17% rise from January 2025's ₹26,400 crore. The stability comes amid heightened stock market fluctuations triggered by global events such as the US government's actions and new tariffs.
Account growth
Number of contributing SIP accounts rises
According to the Association of Mutual Funds in India (AMFI), the number of contributing SIP accounts rose from 9.79 crore in December to 9.92 crore in January. However, despite the increase in account numbers, SIP assets under management fell from ₹16.63 lakh crore to ₹16.36 lakh crore due to negative mark-to-market impact amid equity market corrections.
Stoppage ratio
SIP stoppage ratio at 74%
The SIP stoppage ratio for January stood at 74%, indicating that a significant number of new registrations were offset by discontinuations or tenured SIPs during the month. This high stoppage ratio reflects the impact of market volatility on investor behavior. Venkat Chalasani, CEO of AMFI, noted that January witnessed extreme market volatility due to global events, which triggered a risk-averse sentiment across markets including India.
Investor response
Experts optimistic about SIPs' resilience
Chalasani emphasized that market volatility should be viewed in light of external headwinds rather than a structural change in investor behavior. He expressed confidence that despite the volatility, disciplined long-term investing would continue positively among Indians. Ankur Punj, MD at Equirus Wealth, echoed this sentiment by highlighting the reliance on SIPs and STPs amid market fluctuations and the continued popularity of multi-asset funds as a hedge against volatility.