SIP Closures Surge to 85% in December Amid Record Investments

• Monthly SIP investments hit a record ₹30,002 crore in December, a 5% MoM and 17% YoY increase.
• Despite record investments, the SIP stoppage ratio sharply rose to 85.30% in December from 75.57% in November.
• Approximately 51.57 lakh SIPs were closed or matured in December, while 60.46 lakh new SIPs were started.
• Experts suggest a high stoppage ratio isn't always negative, as it includes matured SIPs and portfolio rebalancing.
• Total SIP AUM reached ₹16.63 lakh crore, growing 22% YoY and accounting for 20.7% of the mutual fund industry's total AUM.

Why It Matters: Record SIP investments are accompanied by a significant rise in closures, indicating dynamic investor behavior.