SIP closures rise to highest in February as investors see dull return

A SIP lets investors commit a fixed sum every month, compared to putting in a large sum at once.

The number of systematic investment plans (SIPs) closed rose to 789,000 in February: the highest this financial year. New registrations in February stood at 1.49 million as compared to 1.64 million in January.

Market players said dull returns in three years could have prompted some investors to close their accounts.

“Many investors had started investing in small cap schemes through SIPs three years ago, but even with the markets at elevated levels they have earned returns only in single digits. This could be one of the reasons why pulling out the money. Many investors are waiting to start their investments