The strike ratio this fiscal year fluctuated between 72% and 76%.
In November, while new SIP account openings stood at 57.14 lakh, discontinuations/expirations stood at 43.18 lakh, implying a high churn rate due to weak returns over the past year.
The strike ratio this fiscal year fluctuated between 72 and 76 percent. The SIP disruption ratio is the number of terminated SIPs compared to the number of new accounts registered.
If this ratio exceeds 100 percent, it indicates that more MF SIPs are being stopped than started. However, the discontinuation ratio also includes the SIPs that have reached maturity.
In April, the SIP ratio hit a high of 406 percent after the Association of Mutual Funds in India eliminated outdated SIP accounts that were not contributing consecutively for three months in a row as per SEBI norms.
Despite the high shutdown rate, inflows through SIPs increased to ₹29,445 crore last month, against ₹26,632 crore recorded in April.
The discontinuation of SIPs was largely due to the flat returns experienced by the equity markets for much of the past year.
Through 2025, Nifty has returned 9 percent, while Sensex rose 8 percent, helped by the sudden surge in foreign investments in the past two months. The return of Sensex between January and September was only 2 percent and that of Nifty was 4 percent.
Akhilesh Prakhya, investment manager at SKG Investment and Advisory, CAT 3 AIF, said that despite the continued strength of SIP inflows, the latest data through November clearly shows SIP disruptions increasing alongside record contributions, underscoring a churn-driven rather than sentiment-driven trend.
A key reason is tenure completion as many SIPs started during previous market cycles, especially post-Covid and during the 2021-2022 retail wave, were set up with a fixed horizon and are now maturing naturally, he added.
Moreover, income and liquidity pressures are visible as households rebalance cash flows against the backdrop of higher living costs and competing financial priorities. This is reflected in the periodic moderation in contributing SIP accounts, which stood at 942.5 lakh in November, below the peak levels seen earlier in the cycle, Prakhya said.
Published on December 20, 2025
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