More investors stopped SIPs than started new ones in October
More investors discontinued their systematic investment plans (SIPs) than registered new ones in October, pushing the SIP stoppage ratio to 116%, its highest level since April 2025, according to data from the Association of Mutual Funds in India (Amfi).
The SIP stoppage ratio measures the number of SIPs discontinued or whose tenure has ended against the number of new SIPs registered during a month. A ratio above 100% indicates that more SIPs were stopped than new ones started.
In October, 5.9 million SIPs were either discontinued or completed their tenure, while 5.1 million new SIPs were registered. The stoppage ratio was 79% in September.
The rise in SIP closures coincided with a broader slowdown in equity mutual fund inflows. Net inflows into equity schemes dropped 14% month-on-month to ₹32,924 crore in October, the Amfi data showed. SIP contributions in October were at ₹32,162 crore, a little below the ₹32,490 crore recorded in September.
Last in, first out
A section of investors, particularly those who entered mutual funds over the last three to four years, may be stopping their SIPs due to disappointing returns, according to Manish Mehta, chief business officer at SBI Mutual Fund.
“Interactions with do-it-yourself investors, especially those investing through fintech platforms, suggest that while new investors continue to register SIPs, existing investors are increasingly discontinuing them, resulting in net negative SIP flows from older investors,” Mehta said.
Feroze Azeez, joint CEO at Anand Rathi Wealth Limited, said, “The stoppage ratio is not necessarily a measure of investor pessimism. It also captures SIPs completing their tenure and can rise when fresh registrations moderate. Plus, SIP stoppages only measure the number of mandates, while SIP contributions measure the money investors continue to commit.”
Despite market volatility, SIP contributions in October were just 1% below September’s record high, 8.9% higher year-on-year, and above ₹32,000 crore for the third consecutive month, Azeez added.
While recent SIP flows have moderated, the slowdown may prove temporary. A recovery in market indices in October, alongside easing oil prices, robust September-quarter earnings, and a moderation in global uncertainties, has brightened the market outlook, which could boost investor confidence and encourage them to continue investing, said Mehta.
Rotation to large caps
The exuberance in mid- and small-cap funds also appears to have cooled in October, with inflows into both categories seeing a sharp decline. Net inflows into small-cap funds fell 29% month-on-month to ₹6,407 crore, while mid-cap fund inflows declined 37% to ₹4,892 crore.
In contrast, investor interest in large-cap funds appears to be picking up. Net inflows into the category rose 20% month-on-month to ₹1,032 crore in October. The large & mid cap category saw an even sharper increase, with inflows nearly doubling (up 98%) to ₹8,484 crore.
The shift in investor preference comes amid a strong rally in large-cap stocks. The Nifty 50 has gained 11.7% since 1 October, while the Nifty Midcap 150 index has risen 3.5% and the Nifty Smallcap 250 index has declined 0.7%.
The large- & mid-cap category accounted for nearly 26% of total active equity inflows in October, compared to just 11% in September, and attracted more investments than standalone mid-cap and small-cap funds, said Azeez.
“What stands out in October is the change in preference across equity categories, with investors showing greater interest in blended market cap strategies,” Azeez said.