In December 2025, India’s mutual fund industry reached a significant milestone as monthly inflows through Systematic Investment Plans (SIPs) crossed the ₹31,000 crore mark for the first time. However, this record was accompanied by a sharp increase in the SIP stoppage ratio, which climbed to 85%.
Record SIP Inflows: December 2025
Retail investor discipline remained strong despite broader market volatility, driving SIP contributions to an all-time high.
- Gross Inflows: Monthly SIP contributions reached ₹31,002 crore, up roughly 5.3% from ₹29,445 crore in November.
- SIP Assets: Total assets under management (AUM) linked to SIPs rose to ₹16.63 lakh crore, accounting for 20.7% of the entire mutual fund industry’s assets.
- Account Growth: The number of contributing SIP accounts expanded to 9.79 crore, compared to 9.43 crore in November.
- New Registrations: Investors registered 60.46 lakh new SIPs during the month, a 5.8% increase over the previous month.
Understanding the 85% Stoppage Ratio
The “stoppage ratio” measures the number of SIPs discontinued or matured relative to new registrations in a given month. While the headline figure reached 85%, data from the Association of Mutual Funds in India (AMFI) provides a more nuanced view.
| Parameter | December 2025 Data |
| New SIPs Registered | 60.46 Lakh |
| Total SIP Closures | 51.57 Lakh |
| Overall Stoppage Ratio | 85% |
| True Discontinuations | ~33 Lakh |
| Natural Maturities | ~18.6 Lakh |
| Adjusted Stoppage Ratio | ~55% |
Key Drivers for the Surge
- Natural Maturities: A significant portion (approx. 36%) of the closures were due to SIPs reaching their intended end-of-term rather than investors manually stopping them.
- Market Volatility: Short-term market fluctuations often trigger “panic pauses” or profit-booking among newer retail investors.
- Financial Year-End Pressures: Outflows in December are often linked to advance tax payments and quarterly liquidity management by both retail and corporate investors.
- Rise of Direct Investing: Experts note that investors in “direct mode” accounts often exhibit higher churn and shorter holding periods compared to those with professional guidance.
Broader Mutual Fund Performance
While SIPs remained resilient, the overall mutual fund industry saw a marginal decline in total assets.
- Total Industry AUM: Slipped slightly to ₹80.23 lakh crore from ₹80.80 lakh crore in November, primarily due to heavy outflows in debt funds.
- Gold ETFs Surge: Gold-oriented exchange-traded funds saw a massive 211% jump in inflows, reaching ₹11,647 crore as investors sought safe-haven assets.
- Equity Trends: Net inflows into equity schemes moderated by 6% to ₹28,054 crore, with a strong preference for flexi-cap funds, which attracted over ₹10,000 crore.
