Contributing SIP ratio rebounds; even SIP stoppage moderates

14 Nov 2025 , 11:02 AM

HOW OCTOBER SIP STORY COMPARES WITH ROLLING AVERAGES

Before we get into trend analysis of SIP registrations and SIP stoppage ratio, a word of caution. The months from Jan-25 to Apr-25 (shaded) were exceptional months due to the SIP folios clean-up. Hence, they distort the comparison and must be taken with a pinch of salt. Let us first look at how the averages of key variables shaped up for last 1 year.

The rolling 12-month new SIP registrations stood at 54.76 lakhs, with October well above that. SIP discontinuances averaged 55.98 lakhs in rolling 12 months; distorted by the SIP clean-up. Even in case of net SIP flows, average flows were skewed by those 4 months. The rolling 12-month SIP stoppage stood at 108.26%, but excluding the 4 abnormal months, it was 73.27%. So, latest SIP stoppage ratio at 74.85% for October 2025 is almost at par.

Transaction Month	New SIP Registrations	Total SIPs Discontinued	Net SIP Flows	SIP Stoppage Ratio
Oct-25	60.25	45.10	15.15	74.85%
Sep-25	57.73	44.03	13.70	76.27%
Aug-25	55.23	41.15	14.08	74.51%
Jul-25	68.69	43.04	25.65	62.66%
Jun-25	61.91	48.16	13.75	77.79%
May-25	59.15	42.66	16.49	72.12%
Apr-25	46.01	162.32	(116.31)	352.79%
Mar-25	40.19	51.55	(11.36)	128.27%
Feb-25	44.56	54.70	(10.14)	122.76%
Jan-25	56.19	61.33	(5.14)	109.15%
Dec-24	54.27	44.91	9.36	82.75%
Nov-24	49.47	39.14	10.33	79.12%
Oct-24	63.70	38.80	24.90	60.91%

Data Source: AMFI

The story of the defunct SIP folio cleanup; and the spike in the SIP stoppage ratio to 353% in April 2025, is well documented. Post-April, SIP stoppage ratio has been consistently under 80%, although the absolute SIP stoppage ratio levels are higher than pandemic peaks. Is this an aberration or the new normal; only time will tell. It is hard to pin-point a reason for this spike in SIP stoppage ratio, although it could range from investor reallocation to physical assets, to a sense of risk aversion at higher levels. To an extent, Direct Plans have played a part in spiking the SIP Stoppage ratio.

HOW INVESTORS INVITE DOUBLE TROUBLE WITH SIPS

While the SIP flows have picked up substantially, there are still innumerable cases of investors inviting double trouble with SIPs. For instance, when the markets inch towards new highs, there is an aversion to persist with the SIPs. The argument is that stopping and starting the SIP after a correction may be wiser. However, this often leads to inertia in restarting SIPs and an element of market timing, which is contrary to SIP philosophy.

The second challenge is during downturns. Investors believe that when markets are down, lumpsum investing is more rational. That may be theoretically correct, but the flaw in the argument is that you do not know the bottom, and may still end up with nerve-racking MTM losses. An easier way is to stick to long-term SIP approach, which automatically smoothens out such variations. Once that sinks in, SIP stoppage ratio will automatically stabilize lower.

CONTRIBUTING SIP FOLIOS REBOUND IN OCTOBER 2025

After a surprising low in August, Contributing SIP ratio rebounded in September and October 2025.

Transaction Month	Outstanding SIP Folios	Contributing SIP Folios	Contributing SIP Folio Ratio
Oct-25	987.88	945.20	95.68%
Sep-25	972.74	925.21	95.11%
Aug-25	959.04	898.70	93.71%
Jul-25	944.97	911.18	96.42%
Jun-25	919.32	864.70	94.06%
May-25	905.57	856.00	94.53%
Apr-25	889.08	838.25	94.28%
Mar-25	1,005.39	811.16	80.68%
Feb-25	1,016.75	826.41	81.28%
Jan-25	1,026.89	834.97	81.31%
Dec-24	1,032.03	827.44	80.18%
Nov-24	1,022.67	797.32	77.96%
Oct-24	1,012.34	794.48	78.48%

Data Source: AMFI

The Contributing SIP ratio has clearly benefited from elimination of defunct SIPs. In fact, for 7 months post April 2025, the Contributing SIP Folio Ratio has been consistently above 90%, and getting better. This is a new normal, after staying in the range of 70% to 80% till then. The rebound in October 2025, once again, shows a conscious effort to revive inactive SIPs. Contributing SIP Folio ratio has rebounded from 93.71% in August 2025 to 95.11% in September 2025 and further to 95.68% in October 2025. It shows higher SIP wallet share of mutual fund investors; and that is the good news!