SIP Stoppage Soars: 5 Reasons Why Investors Are Exiting Mutual Funds

• Net inflows into equity mutual funds decreased by 6.21% in December 2025, dropping from ₹29,911.05 crore in November to ₹28,054.06 crore.
• The mutual fund industry saw net withdrawals of ₹66,590.70 crore in December, leading to a 0.7% decrease in total Assets Under Management (AUM).
• The SIP stoppage ratio reached approximately 85% in December 2025, indicating a significant number of existing SIPs were stopped or discontinued.
• Key reasons for SIP stoppages include maturity of old SIPs, market volatility causing negative returns, investors seeking short-term gains, and flawed market timing strategies.
• Despite the high stoppage ratio, a portion of it is attributed to SIPs reaching their natural maturity period, rather than solely panic withdrawals.

Why It Matters: A high SIP stoppage ratio and declining mutual fund inflows signal investor caution amid market volatility.