Systematic Investment Plan Registrations See Slight Increase Amid Market Volatility

SIP Registrations Slip to 12-Month Low Amid Volatile Markets

The Association of Mutual Funds in India (AMFI) data has revealed that new Systematic Investment Plan (SIP) registrations in mutual funds softened in April 2026, reaching a 12-month low of 50.71 lakh. This decline from 74.11 lakh in January 2026 marks a significant slowdown in fresh investor participation, with SIP discontinuations continuing to exceed fresh registrations for a second consecutive month.

Despite this moderation, experts stress that the trend reflects short-term caution among new investors rather than any structural weakness in the SIP ecosystem. According to data, monthly SIP contributions remained strong at over Rs 31,000 crore, indicating that existing investors continue to stay invested despite near-term uncertainty. SIP assets under management rose to around Rs 16.85 lakh crore, further underscoring the resilience of the core retail investor base.

The slowdown in fresh SIP additions is attributed to a mix of global and domestic factors, including severe global uncertainties such as the US-Iran conflict, higher crude oil prices, rupee weakness, and rising inflation. These pressures have weighed heavily on investor sentiment and household savings, leading to a decline in fresh registrations.

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The stoppage ratio, which measures the percentage of SIP discontinuations to fresh registrations, has been a focus area in recent months. While the ratio has crossed 100% in March and April, experts caution that this should not be viewed as a major structural concern. The high stoppage ratio is largely due to a sharp decline in new registrations, with tenure completions, mandate expiries, and failed auto-debits also contributing to the numbers.

Experts emphasize that SIP discontinuation numbers should not be viewed in isolation, as they include a range of reasons such as goal completion, portfolio restructuring, and annual investor reshuffling, apart from voluntary exits. Despite the moderation in registrations, SIP AUM continues to expand, rising to Rs 16.85 lakh crore in April 2026 from Rs 13.35 lakh crore in March 2025 and Rs 10.71 lakh crore in March 2024.

Monthly SIP contributions have also remained strong, reaching Rs 31,115 crore in April 2026, up from Rs 26,632 crore in April 2025. The number of contributing SIP accounts has remained robust at 964.91 lakh in April 2026, compared to 811.16 lakh in March 2025 and 838.25 lakh in April 2025. These trends suggest that existing investors are continuing their SIP commitments despite market volatility, reflecting an increasing awareness of long-term wealth creation and rupee cost averaging during market corrections.

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