SIPs Not Quenching Investor Thirst?

Published On: June 20, 2023 - Despite the mutual fund industry experiencing a significant inflow of funds through Systematic Investment Plans (SIPs), there has been an increase in the number of SIPs being discontinued or redeemed last month. This rise can be attributed to investors' concerns regarding market valuation. A considerable number of investors have chosen to utilize the 'pause' option, which was introduced during the peak of the Covid pandemic, allowing them to temporarily halt their investments. The Association of Mutual Funds in India (AMFI) defines a SIP as discontinued if an investor pauses their instalments continuously for three months. According to data from AMFI, the number of discontinued or matured SIPs saw a 7% increase, reaching 14.19 lakh last month compared to the 13.21 lakh recorded in April.