News Post

SIP flows at record highs but SIP stoppage ratio also hits new high in May

Money Control

· 12d
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In May, Indian mutual funds recorded a net inflow of Rs 20,904 crore through systematic investment plans (SIPs), hitting a new high for the 11th consecutive month. However, the SIP stoppage ratio also reached a record high, causing concern among industry players. Data from the Association of Mutual Funds in India (AMFI) shows that 49.74 lakh new SIP accounts were registered in May, while discontinuations increased by 32.21% to 43.96 lakh. Multiple factors, including unfinished KYC validations and expensive market valuations, are contributing to the trend of SIP stoppage. Investors are cautious and waiting for clearer market direction.

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