Systematic Investment Plan: If you are running a Mutual Fund Systematic Investment Plan i.e. SIP and are thinking of closing it, then it is not necessarily a wrong step. Many times there are situations when stopping SIP can prove to be a wise decision.
Generally, wealth advisors say that systematic investment plans should not be stopped midway, especially when the market is falling. At such times, there is an opportunity to buy cheap units through ‘Rupee Cost Averaging’. But there are some exceptions to every rule.
SIP closure statistics show you are not alone:
44.03 lakh SIPs were closed in September 2025, while the number was 41.15 lakh in August — an increase of about 7%. Last year, in September 2024, 40.31 lakh SIPs were closed. These also include those SIPs whose tenure had been completed.
| month | Number of SIPs closed |
| september | 44.03 lakh |
| august | 41.15 lakh |
| july | 43.04 lakh |
| june | 48.16 lakh |
These are the 5 right reasons to stop SIP-
1. Financial goal is accomplished: If you have achieved your investment goal, then stopping SIP is the right step.
2. Want to diversify portfolio: It may be better to stop one big SIP and start smaller SIPs in different schemes.
3. Want to correct investment in wrong fund: If you have invested in the wrong fund then invest in the right place through STP (Systematic Transfer Plan).
4. Sectoral Fund is in loss: Instead of suffering long term losses, it would be better to switch to index funds.
5. Financial Emergency: Stopping SIP in case of emergency needs is not a compulsion, but it may be wise.
SIP is a long term investment, but if your financial situation or goals have changed, then it is not wrong to stop it. It is important that every decision is taken thoughtfully and after consultation.
