The SIP stoppage ratio surged to 109% in January, up from 82.73% in December, showing a rise in SIP cancellations. Source Money Control
Experts are divided—some see the rise in SIP cancellations as alarming, while others view it as normal during market volatility.
Nifty 50 fell 5% in six months, Sensex dropped 4%, while BSE MidCap and SmallCap indices fell nearly 20% from recent highs.
Social media debates on SIPs, especially in mid and small-cap funds, have raised concerns, affecting investor sentiment.
Fund houses urge investors to stay invested for the long term and avoid panic exits due to short-term market fluctuations.