Sip investment strategy: For the last few months, there was a lot of ups and downs in the stock market. Especially, US President Donald Trump’s tariff war, the high valuation of the market in India, the weak quarterly results of companies, and pleasant stress. But, now things are seen returning to a large extent. Due to this, the stock market is seeing a rose again.
In such a situation, the question arises that what should be the strategy of investors in the Systematic Investment Plan (SIP). This question also becomes important because in the era of decline, many investors panicked and shut down the SIP.
What is the current condition of SIP?
An interesting trend has been revealed in the April 2025 figures of the Association of Mutual Funds in India (AMFI). The records of 1.62 million SIPs closed in April, which is more than three times compared to the previous months. But the shocking thing is that the total investment in SIP i.e. Monthly Inflow reached a new height.
51.55 lakh SIPs were closed in March, while in February and January, the numbers were 54.7 lakh and 61.33 lakh respectively. Conversely, SIP inflow in April was ₹ 26,632 crore, which is more than ₹ 25,926 crore in March and more than ₹ 25,999 crore in February.
| month |
Closed SIP number |
| april | 1.62 crores |
| march | 51.55 lakhs |
| February | 54.7 lakhs |
| January | 61.33 lakhs |
What is the reason for SIP shutting down?
Experts believe that the SIP that started three or five years ago is now ending naturally. It has nothing to do with the nervousness of investors. SIP investment is a witness to this, in which there is no shortage. This suggests that the sentiment regarding SIP is still positive.
Anand Rathi Wealth’s executive director considers it a proof of the ‘understanding’ of investors. He says, “New investors are now maturing. Many people are coming out of SIP with discipline by meeting their financial goals. It is not a nervousness but a sign of plan and understanding.” He says that many people are shifting to better schemes or asset classes, which is proof of the growth of financial literacy in India.
Be realistic about SIP returns
Experts believe that investors’ expectations from SIP have increased significantly. Today there are a large number of investors in the market who have come to the market after the Corona period in 2020. Since then, a long bull run ran and the market gave surprise returns.
AVP Siddharth Alok of Investments in Epsilonmoney says, “Nifty 500 has given 25.7% CAGR in the last 5 years, but the 10 -year -old CAGR has been 13.9%. 14% returns for long periods are also quite good, but we have to keep our expectations realistic.”
What should investors do now?
Dr. VK Vijaykumar, Chief Investment Strategist at Geojit Investments Limited, says, “A common mistake that investors, especially new investors do, is that the market gets nervous when the market falls and stops SIP. The experience has proved that this is a big mistake. Therefore, investors should continue to be a big mistake.
He says that recently there has been a matter of concern that the SIP stop ratio was quite high in April. The market declined after the announcement of Trump’s reciperook Tariff, causing investors to panic. But after this, the fast recovery in the market, it proved that it is almost impossible to make the market time.
Vijaykumar said, “Therefore SIP should continue. Yes, from the perspective of valuation, it is better to do SIP in largecap or flexi cap as compared to smallcap. Such switching can be done.”
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