'Regular' accounts drove bulk of SIP closures in February, shows data

Closures were higher in direct plans in January

While direct plan systematic investment plan (SIP) account closures were behind the net decline in SIP accounts in January, the reverse played out in February.

 

Regular plan SIP accounts, which are expected to be more resilient to market conditions, shrunk by 0.8 million in February, registering the first monthly decline at least in the last three year.

 

The total number of active SIP accounts in mutual fund (MF) schemes declined by a million to 101.7 million in February. Regular plan SIP accounts accounted for 80 per cent of the net closures.

 

In January, the net decline in SIP accounts came