This year, more than crore sip accounts of mutual funds have been closed. Investors are seeing it as a danger bell. According to data from the Association of Mutual Funds in India (Efi), more than one crore sips have been closed so far in 2025. In June only about 48 lakh sips closed or matured. This reached the Sip stop ratio of 77.7 percent. However, experts say that mutual fund industry has good health.
Record investment of SIP in June this year
In June this year, the monthly investment from SIP reached an all-time high of Rs 27,269 crore. This is more than Rs 26,688 crore in May. The number of sip accounts also increased to 9.19 crore in June. It was 9.06 crores in May. The Sip stop ratio shows the number of newly opened SIPs compared to the closed account of SIP. Increasing sip stoppage ratio does not mean that investors are stopping investing.
Many investors are worried about high valuation
Every year a large number of SIP closure is due to their maturity. Gaurav Garg of Lemon Markets said that the valuation of the market is high. Many investors are also withdrawing their money for this. This is affecting the number of SIP accounts. He said that due to more valuations, he is worried about the decline in the market. So they are withdrawing their money. However, it has been observed that investors get good returns when they maintain their business for a long period.
Closing Sip can miss the opportunity for excellent returns
Harsh Gehlot, the co-founder and CEO of Finance, said that when the market is close to peak, the closure of the sip can prove to be a big mistake. Many investors feel that it is prudent to do so, but the truth is that this makes the investors miss the opportunity to earn great returns in the long term. He said that SIP allows you to invest with discipline for a long period. It has no meaning by climbing and descending the market.
Every time the market collapses, the new all time makes high
Experts say that many investors shut down SIPs on the decline in the market. They do not know that when the market is falling, then investing is the highest earning. The market has fallen after going on all-time high several times before. Then he has created a new all time. The nature of the market is to come down. Cost average and compounding are benefited only when you maintain investment for a long time.