2020 crisis

SIP stoppage ratio jumps to fresh high in March

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Even as the monthly SIP inflow figure hit a 12 month high in March 2020 of ₹8,641 crore, another key measure of SIP data showed an alarming trend.

The SIP stoppage ratio hit 71% in March 2020, crossing its previous high of 66% in September 2019 to also hit a 12 month peak.

As per media reports, this latter figure was an 18 month high The ratio measures the number of SIPs discontinued or expired as a percentage of fresh SIPs registered.

The jump in the March figure was largely due to a drop in fresh SIPs being registered rather than existing SIPs being discontinued.

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