SIP investment continues to suffer, Due to the stock market decline, the number of new SIP accounts opened has decreased and the number of existing investments has increased.
Why are people closing SIP
SIP is considered a suitable investment method for investing in mutual funds. Retail investors are also showing interest in it. However, the stock market decline is having an impact on investors.
Investment in mutual funds has decreased due to the recent decline. The SIP investment cancellation rate was 122 percent in February, according to the Mutual Funds Association data.
The SIP cancellation rate in the previous months was 109 percent in January, 83 percent in December and 79 percent in November. New account openings have also fallen by more than 16 percent on a three-month average. Small-cap funds have also been affected.
Experts continue to emphasize that continuing SIP investments is the right strategy, despite market volatility.
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