January 13, 2025 - Fluctuations in the global stock market has led investors to start closing their Systematic Investment Plan (SIP) accounts. Reports say that in December 2024, 45 lakh SIP accounts were shut down, which is a new record. The previous record was in May 2024 when 44 lakh accounts were closed.

Even new equity investors are shying away from opening SIP accounts because of the market volatility, say market analysts. The Mutual Fund industry added 900,000 SIP accounts in December 2024, which is the lowest in the past seven months. According to AMFI (Association of Mutual Funds in India), the number of new SIP accounts dropped last month. December 2024 saw the opening of 54 lakh new SIP accounts whereas in July 2024, 73 lakh new SIP accounts were opened.

Meanwhile, overall in 2024, the total number of active SIP accounts increased by 2.68 crore, reaching 10.3 crore. In comparison, Mutual Funds added 1.51 crore accounts in 2023.

However, despite the closure of SIP accounts and the market downturn, the impact on investment was minimal. Last month, investors poured Rs 26,459 crore into Mutual Fund schemes through SIPs.

Source: Media Reports