Don't lose rupee cost averaging by stopping SIPs; stay focused on goals

The systematic investment plan (SIP) stoppage ratio surged to 109 per cent in January 2025, up from 82.7 per cent in December 2024, according to data from the Association of Mutual Funds in India (Amfi). The rise in SIP discontinuations, outpacing new registrations, suggests a shift in investor sentiment vis-à-vis equities.

 

What led to the surge?

 

Experts attribute the surge primarily to heightened equity market volatility since September 2024. “Consistent market corrections and the amplified noise around them increase the fear of worst-case scenarios,” says Dennis Gabriel, partner, Upwisery.

 

Portfolio reviews also played a part. “At the start of the