Sip
The ongoing decline in the stock market has spoiled the mood of mutual fund investors. SIP emerged as the most preferred investment medium at one time is losing its glow very fast. It seems that investors are disillusioned with SIP. The latest data of the Association of Mutual Funds in India (AMFI) suggests that 61.33 lakh sip accounts were closed in January 2025. At the same time, 56.19 lakh new SIPs were registered during this period. In this way, more SIPs were discontinued compared to newly launched SIPs. By the way, this is not the first month when the number of those who closed Sip has increased. For the past several months, the shutdowns of Sip accounts are growing rapidly.
Why Sip accounts are getting closed fast
Market experts say that investors are concerned about a steep fall in the price of their investment. Retail investors are now worried due to the steady fall in the stock market. It is very difficult for common investors to see their portfolio falling daily. Due to this, his trust in equity asset class has stagger, while other asset classes like gold and date are continuously giving and better returns. Therefore, many investors are withdrawing money by closing sip account. They feel that if the account is not closed then the return which has been received in the last 4 to 5 years will also be over.
Investors increased rapidly after Corona
After the Korana epidemic, new investors came rapidly in the stock market. The market was unilaterally rose after Korana, leading to bumper returns to investors. Now the market is constantly falling. New investors have never seen such a decline. Therefore, they are withdrawing their money from the market for fear. However, long -term investors need to worry. This is the best time to continue your SIP to get more units during the market fall. This will help in increasing the portfolio price if the market increases.
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