SIP investors face first real test amid ongoing equity market selloff

In January, 6.1 million account closures surpassed new registrations for the first time

The ongoing selloff is testing investors’ patience with systematic investment plans (SIPs), a key pillar of market support. In January, SIP account closures surpassed new registrations for the first time, with 6.1 million SIPs discontinued compared to 5.6 million new additions. This marks the sixth consecutive month of decline in net SIP account additions.

 

Industry experts warn that if the market correction persists, the rate of closures could rise further. Despite the slowdown in net additions, total SIP investments in January remained robust at ₹26,400 crore, only slightly lower than the record inflows seen in December 2024. However, these figures