SIPs closure ratio spikes to 70% in March, highest in previous fiscal

The sharp jump in ratio indicates that , for every three registrations, at least two requests are for closure

The closure rate for systematic investment plans (SIPs) saw a big jump in March, climbing to 70 per cent, indicating that for every three new registrations, at least two requests were made for stopping SIPs.

Both closure ratio and number of closures were the highest seen in FY20. Closure requests crossed the 600,000-mark for first time in FY20. At 70 per cent, it was significantly higher than the 11-month average of 57.4 per cent, seen in the mutual fund (MF) industry.

“The 70 per cent closure ratio could be among the highest levels. The sharp decline in new registrations largely