SIP Discontinuation: Why Investors Are Halting Mutual Fund Investments

• Investment in equity mutual funds decreased by 6.21% in December 2025, with total net outflow from the mutual fund industry reaching ₹66,590.70 crore.
• The SIP stoppage ratio hit 85% in December 2025, meaning 85% of SIPs were stopped or paused for every new one started.
• Key reasons for discontinuation include completion of fixed SIP tenure, continuous market downturns, and disappointment from quick return expectations.
• Other factors are attempts at market timing by investors and rising expenses leading to cash flow pressure.
• Despite discontinuations, monthly SIP investment remains at record levels, indicating a natural investment cycle rather than a loss of faith.

Why It Matters: Investors are stopping SIPs due to tenure completion, market volatility, and financial pressures, but overall investment remains strong.