SIP Stoppage Soars: 5 Reasons Why Investors Are Halting Mutual Fund Investments

• Net inflows into equity mutual funds declined by 6.21% in December 2025, dropping to ₹28,054.06 crore from ₹29,911.05 crore in November.
• The mutual fund industry saw a net outflow of ₹66,590.70 crore in December, leading to a 0.7% decrease in total AUM.
• The 'SIP stoppage ratio' reached nearly 85% in December 2025, meaning 85% of old SIPs were stopped for every new one started.
• Reasons for stopping SIPs include completion of tenure, market volatility causing negative returns, and unrealistic short-term gain expectations.
• Other factors are incorrect market timing strategies and household budget/cash flow crises due to inflation and rising expenses.

Why It Matters: A high SIP stoppage ratio and declining inflows indicate investor panic and financial strain amidst market volatility.