MF News ‘Half of the total SIP accounts discontinued last year’

‘Half of the total SIP accounts discontinued last year’

Over 49% of the total SIP accounts have been discontinued last financial year.

Abhishek Kumar Aug 26, 2021

Half of the total SIP accounts in the MF industry have been discontinued in the last financial years, shows IDFC MF Report based on CAMS MFDex data. The data shows that 49% of the total SIP registered were discontinued last financial year.

The report captures CAMS-MFDEx data, which covers 96% of the overall industry.

South leads in SIP retention

South Indians cling to their SIPs for the longest time. Data shows that the SIP ceased to SIP registration ratio of the south region is the best at 42%. The figure has improved from 46% in FY 2020.

East has the lowest SIP retention rate. For every new 100 SIPs registered, there were 54 discontinuations in FY 2021.

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23 Comments

Gaurav Singhvi · 2 years ago `

Wrong Data Presented. It is highly misleading.

FBN · 2 years ago `

Wrong misleading information. Cafemutual has started posting very biased articles without verifying facts. Very wrong and against MFD community.
99% SIP started thru MFDs are cancelled? Are you kidding?

rajesh · 2 years ago `

i have small number of SIPs but all are continued. this is misleading data and looks like they want to kick out distributors hence posting fake info

Arun kumbhar · 2 years ago `

Shocking truth

Bharat Yadav · 2 years ago `

I don't from where you guyz are getting the data but its really misleading because of MFDs investors are consistently investing without any worry...

Nishant Patnaik · 2 years ago `

Dear all, the story is based on the industry data. Please write to us at nishant@cafemutual.com or abhishek@cafemutual.com for further clarification. Just to clear the air, the article talks about SIP account number at an distribution channel level. It does not capture SIP account at an individual level.

Brajendra Nandan Tripathy · 2 years ago

Dear Mr. Nishant/ Abhishek,
Your intent is absolutely conspicuous now. The effort you are putting in to collate data could have been directed towards positive sides of MFD selling and managing portfolios. The difference in expense ratio in between direct and regular is being highlighted by folks like you everywhere which is technically incorrect as a particular fund's performance is cyclical and mfds tactically make several changes to a portfolio during the accumulation phase of an investment which is again strategically set at the beginning totally based on goals of the investor. Mfds do get higher alpha by doing tactical changes which makes consultation important.. Imagine treating yourself for Covid instead of consulting a doctor ( standard medicines are now known to everyone). Deeply saddened by the fact that CAFEMUTUAL has become anti MFD now.. Time to boycott it perhaps...Big shame indeed!!!!

51920 · 2 years ago `

Bhai saheb yeh jo aaj SIP 10K Cr. ka dikh raha hai woh sirf MFD ke ground banane se hua hai aur jo data aapne yahan pe share kiya hai woh bilkul galat hai, hosakta hai ki koi khas AMC ke saath aisa hua ho.....So plz. take more care to publish such data........We can prove that U are wrong here in.

kalpesh · 2 years ago `

I 100% disagree with this , i think this data may be for IDFC Mf , as now investor get good XIIR returne then why stop the sip , even in covid time i say my investor 86 % SIP continue that why this report bogus and baseless , may be for discourage to MFD like SEBI

ANIL KUMAR · 2 years ago `

Sir i appreciate CafeMutual but this time my point & opinion total different i associated with NJ India last 4 year , if i check my & my friends MFD data SIP book almost double from last year( last Jan 20 SIP 7 Lakhs now 15+ Lakhs SIP book & monthly adding 1 Lakhs SIP every month with our Happy clients) how this possible, practically impossible pls check again & provide correct data, MFD doing lot of Educational awareness session with client to generate real wealth sir.

narayan sindhee · 2 years ago `

NORMALLY IF A PATICULAR SCHEME IS NOT PERFORMING WELL ,THE DISTRIBUTOR SUGGESTS TO STOP SIP IN THE EXISTING SCHEME AND RECOMMENDS TO START SIP IN NEW SCHEME. THIS IS NEITHER CEASURE OF SIP NOR ADDITION OF SIP IN THE BOOK SIZE OF DISTRIBUTOR. HERE DISTRIBUTOR THINKS OF INTERESTS OF THE CLIENT. HENCE DATA GIVEN SEEMS TO BE INCORRECT AND MISLEADING

sudhanshu arora · 2 years ago `

Bull shit. Cafe mutual is biased against MFDs.

Santosh Hegde · 2 years ago `

All SIP's which I have registered are still continuing. Information is not correct.

Brajendra Nandan Tripathy · 2 years ago `

TAPAN PAUL · 2 years ago `

I think ,Cafemutual fund now focused only direct plan. So their opinion against MFD. This is real fact

Sharath Mohandas · 2 years ago `

The subject line & data seems to be misleading. Now a days, this forum is becoming a non MFD friendly one. Editors should consider rethinking about posting news that can hurt MFD's emotions.

Mahesh · 2 years ago `

Yes agreed with all.. wrong data mentioned..
These people are misleading investor with such bullshit data... MFD are educating people and providing solutions in real sense for wealth creation

SAGAR DAXINI · 2 years ago `

Mr. Naveen can u pls tell which Industries Data it is. Maximum sip registered in direct and via Banks is been stopped, SIP through MFD are going good. Don't exaggerate and show the issues. You can sometimes show the importance of MFD'S ALSO

Sagar Daxini · 2 years ago `

Mr. Nishant can u pls tell which Industries Data it is. Maximum sip registered in direct and via Banks is been stopped, SIP through MFD are going good. Don't exaggerate and show the issues. You can sometimes show the importance of MFD'S ALSO

Mayank Saxena · 2 years ago `

Are saf saf naam kyu nhi bata rhe ki hdfc aur ICICI Bank aur sbi bank h un mfd ka naam target rahta h to isi naam pe karwate h ye ki sir ek kisht kata lijiye uske bad band kar dijiyega.jitni jyada mis selling bank karte h utni pure bharat me kahi nhi hoti hai.

Vishal Rochlani · 2 years ago `

Totally wrong data being mentioned, Your heading is itself wrong. Half of the total SIP accounts discontinued last year and your graph says 95% and 99%. This is totally biased data, which needs to be thoroughly checked by Cafemutual Team.

Prashant · 2 years ago `

Whenever it shows that retail investors stay invested for more than 2 years than the credit is given to investors although the distributor is the only reason why the investor stays in the fund for a longer period of time. And when some malicious data by some agency shows that half of SIPs or 95 to 99% SIP discontinued then the distributor is held responsible. If you want to look at the data only then these are absolutely wrong and malicious data. And you should differentiate the data based on entity meaning Banks(Biggest misselling distributors), Inhouse(Target based selling so again misselling), RIAs (in your past articles it is clearly shown that RIAs also missell and what is worst is they have got misselling license because they pay to the regulator) and Fintech companies (Which only publish performance chart of different mutual funds and based on them the clients select funds which is the most incorrect way of picking up schemes).

It is high time that you stop maligning our community and show the real picture to all the stakeholders which will prove our importance.

Nishant Patnaik · 2 years ago `

Hi All,
Please understand that the story is based on the industry data. Cafemutual has neither twisted the story nor manipulated the facts. The calculation on this story was done at an industry level . We have just reported the data. Also, we have written another article to clear the air. Please write to us if you have any other query at nishant@cafemutual.com or simply call me at 73039 03692.

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