Notwithstanding the record Systematic Investment Plan (SIP) inflow into the mutual fund industry, the number of SIP discontinued or redeemed has increased last month due to investors’ concern over market valuation.
A large number of investors are using the ‘pause’ option introduced during the peak Covid times to stop their investment temporarily. The Association of Mutual Funds in India (AMFI) considers a SIP as discontinued if an investor pauses the instalment continuously for three months.
