The SIP stoppage ratio, which relates the number of closed accounts under the systematic investment plan (SIP) of mutual fund houses to new account openings, shot to a 27-month high of 0.68 in February 2023 compared with the long-term average of 0.51 according to the data from the Association of Mutual Funds in India (AMFI). It shows that investors are turning cautious amid reducing equity returns over the past 12 months. In addition, returns of debt instruments have turned attractive with rising interest rates in the economy.
