Markets are in bad shape, SIPs are in bad shape too; 61 lakh people stopped investing in January.

There is a phase of fierce selling in the stock market. Thousands of crores of rupees of investors have been lost. In such a situation, investors are losing faith in mutual funds as well. Investors are stopping their SIPs. Especially people are losing faith in mid-cap funds and small-cap funds. In January 2025, 61 lakh people have stopped SIPs. They have stopped investing.

There is uncertainty in the stock market. In such a situation, people were looking to invest in low-risk mutual funds. It has also been believed in the market that mutual funds have less risk than the stock market. But these days small and mid-cap funds are in the red. Investors are worried about small and mid-cap funds. There is a phase of fierce selling in the market.

61 lakh SIPs cancelled

According to the report of Moneycontrol, there has been an increase in the SIP stoppage ratio. The number of people stopping SIP has increased by 82.73%. Which is the highest compared to previous years. The number of people stopping SIP has increased as compared to those investing through SIP. The number of people stopping SIP in January has been recorded at 61.33 lakh which is more than 44.90 lakh in December. At the same time, there has also been a decline in SIP inflow. SIP inflow in January was Rs 26,400 crore, which was Rs 26,459 crore in the month of December. However, the decline in SIP inflow is not very much.

AMFI told the reason

In January, 61 lakh people stopped SIP. However, this has not caused much decline in SIP inflow. According to the report, AMFI, an organization working for the mutual fund industry, said that the major reason for the pause of SIP accounts is the reconciling of data between RTAs, which led to the improvement of lakhs of accounts.