Mutual Fund SIP Tips: In modern times, everyone aspires to invest in a place that offers good funds. Investing in a SIP can reap significant benefits. Over the long term, small SIPs can generate substantial funds through compounding. Financial experts generally don’t advise stopping or discontinuing SIPs.
Whether the market is experiencing a bull run or a significant decline, it’s advisable to continue SIPs. Did you know that the impact of market fluctuations is significantly reduced over the long term? Sometimes, stopping SIPs is the right decision. According to an AMFI report, the total number of SIPs closed in September 2025 was 44.03 lakh.
In August, this number was 41.15 lakh, representing a 7% increase. This includes SIPs whose maturity period had expired. We’re going to tell you about situations where stopping an SIP isn’t necessarily the wrong decision.
Choosing the wrong fund or the wrong category
Sometimes, people wonder if they’ve chosen the wrong fund, category, or fund house. In such situations, they’ll try to correct their mistake by stopping their SIP and investing the money elsewhere. This can be done through SIPs.
In the case of diversification
One reason for this could be that you want to diversify your investments. For example, if you want to spread your investments across multiple schemes instead of being stuck in a single scheme, you can stop a large SIP and start several smaller SIPs. This decision could prove beneficial for you.
When a sectoral fund is making losses.
One reason for this could be that you invested in a sectoral fund and are going through a rough patch. In such a situation, instead of being patient for a long time, you might want to exit and reinvest your funds in an index fund.
Financial Emergency
Sometimes, a sudden emergency arises and you need money immediately. If continuing your SIP is becoming increasingly difficult, you can consider stopping it.