SIP Inflows Hit Rs. 31,000 in December, Report by AMFI

A significant rise in SIP shows that the investment has strengthened last month and also the stoppage ratio has risen to 85%. There is a rise from November to December.

The SIP stoppage ratio is a measure that compares the number of Systematic Investment Plans (SIPs) that have been terminated or have reached maturity in a particular month to the number of new ones that have been enrolled.

A ratio higher than 100% indicates that more individuals are stopping than starting, which reflects investor caution, whereas a lower ratio suggests more optimism. The figures may also include legitimate closures following the tenure period and they fluctuate in response to investor behavior and market volatility.

Monthly inflows into the Systematic Investment Plan (SIP) increased to a record Rs. 31,002 crore in December, up from Rs. 29,445 crore in November, demonstrating even greater strength. Reflecting a steady increase in retail participation, the number of SIP accounts that contributed rose from 9.43 crore in November to 9.79 crore in December, as per the Association of Mutual Funds in India (AMFI).

Despite a little moderation in net inflows into equity oriented mutual fund plans throughout the month, the record SIP inflow occurred.

The industry recorded Rs. 60.46 lakh new SIPs in December, an increase from the Rs. 57.13 lakh SIPs registered in November, while Rs. 51.57 lakh SIPs were either discontinued or matured, up from about Rs. 43 lakh in the previous month. In December, this raised the headline SIP stoppage rate to over 85%, up from the 75.56% cessation rate seen in November.