SIP Closures Surge as Growth Gap Narrows, Despite Resilient Industry Fundamentals

India's Systematic Investment Plan (SIP) Market Continues to Grow Amid Volatility

The systematic investment plan (SIP) ecosystem in India has witnessed a significant expansion, with outstanding SIP accounts nearly doubling from 5.3 crore in FY22 to 10.5 crore in FY26, according to data from the National Stock Exchange (NSE) and Association of Mutual Funds in India (AMFI). This growth is accompanied by a rise in closures and tenured SIPs, even as the investor base scales up rapidly.

New SIP registrations have also increased from 2.7 crore to 7.2 crore over the period, while discontinuations rose faster, from 1.1 crore to 6.8 crore. However, the net inflows into the SIP market remain positive, indicating a strong long-term retail participation.

Market Performance and Investor Behaviour

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Market performance during this period has been uneven, influencing investor behavior. The Nifty 50 TRI delivered returns of 20.4% in FY22, 0.87% in FY23, 30.5% in FY24, 6.81% in FY25, and -1.7% in FY26. The BSE Sensex TRI followed a similar pattern, with returns of 19.6%, 2.14%, 26.58%, 6.53%, and -3.7% respectively.

Experts attribute the rise in discontinuations to investors becoming more reactive in the face of market volatility. Scripbox's Sachin Jain explained that when markets underperform or there's uncertainty, investors tend to time their investments more closely.

Distributor Insights

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Some distributors, such as Pravin Kulkarni of UPInvest, point to a combination of factors behind rising stoppages, including uneven returns across segments, geopolitical uncertainty, and concerns around income stability amid rapid technological change. Kulkarni noted that the trend is broad-based but more pronounced in small- and mid-cap schemes, where investors have been booking profits after earlier strong gains.

Expert Opinions

Despite the rise in discontinuations, experts remain optimistic about the SIP market's growth. Swarup Mohanty, CEO of Mirae Asset Investment Managers (India), noted that the system remains fundamentally stable as long as net inflows remain positive. Ritika Sodhani, MD of Sodhani Capital, added that SIP growth has remained resilient despite market volatility, and advisors continue to encourage investors to stay invested through SIPs or lump sum investments.

Optimism Remains

The SIP market continues to attract new investors, with monthly contributions consistently above Rs 31,000 crore and reaching a record Rs 32,087 crore in March 2026. Broader macroeconomic conditions, such as rising disposable incomes, stable consumption trends, and resilient demand indicators, also support long-term investment flows. As advisors, Sodhani and others continue to encourage investors to maintain a disciplined investing approach, viewing corrections as opportunities rather than a time for exits.