Enhanced returns underpin systematic investment plan openings, shows data

The recent surge in systematic investment plan (SIP) account additions has significantly reduced the SIP stoppage ratio, which peaked at 0.68 in February, reaching its highest level in over two years.

Since June, the ratio has consistently remained below 0.56, largely due to the attractive returns generated by most equity schemes.

The SIP stoppage ratio measures the percentage of SIP accounts closed or matured in comparison to new account additions. A lower SIP closure ratio indicates higher retention of SIP investors, which is positive for the industry.

According to data from the Association of Mutual Funds in India, the mutual