India's mutual fund SIPs are facing a test as the stoppage ratio spiked to 128% in March, surpassing new investments. A total of 51 lakh folios closed, raising eyebrows. This means that for every 100 new SIPs, 128 were either discontinued or reached maturity.
While monthly SIP inflows remain substantial, this trend signals potential unease among investors. Market analysts suggest factors like profit-booking after recent rallies and portfolio rebalancing could be at play. The FY25 stoppage ratio now stands at 75.63%, significantly higher than the previous year. Despite this surge in stoppages, the total number of mutual fund folios is still on the rise. Experts advise investors to remain calm and assess their long-term financial goals before making any hasty decisions. Is this a temporary speed bump or a sign of a shift in investor behavior?
Source: The Economic Times
"SIP Bloodbath? Stoppage Ratio Hits 128%, 51 Lakh Folios Vanish!"