Systematic investment plans or SIPs have seen a spike in the closure ratio in December. The ratio — which is SIPs discontinued as a share of new SIPs — stood at 61.4 per cent for the month.
This is a 10-percentage point rise from November’s ratio of 51 per cent. At 591,000, December saw the highest number of SIPs being discontinued in the current financial year, while 962,000 was the number of new SIPs registered in the month. According to mutual fund industry participants, the rise in the closure of SIPs has been on account of investors pulling out investments to ...
