SIP: 61 lakh SIP accounts have been closed, should you also pay your tax? Understand from the experts..

The Indian stock market has seen a huge decline in the last month. The reason behind the continuous ups and downs in the market is believed to be the record selling by foreign investors after Donald Trump's tariff threats. The market has become sluggish due to the lack of support from foreign friends. However, a slight rise was seen in the stock market on Tuesday. Thousands of crores of rupees of investors have sunk due to Dalal Street turning red. Meanwhile, 61 lakh people have paused their SIP and some people are in dilemma about it. Let us tell you what experts are saying about investing in SIP and mutual funds.

It is often said that investing in mutual funds is safer than investing in the stock market, which is also true to a large extent. But these markets have played such a trick that people are losing faith in mutual funds as well. Especially investors investing in small-cap funds and mid-cap funds have turned the market. We are saying that the market has turned because an increase in the SIP stoppage ratio has been seen in January 2025. There has been an increase of 82.73% in the number of people closing SIPs. Which is the highest compared to the past years. There has been an increase in the number of people closing SIPs as compared to those investing through SIP. The number of people closing SIPs in January has been recorded at 61.33 lakh, which is more than 44.90 lakh in December.

What is there on SIP, what are the experts saying

Ashish Somaiya, CEO of Whiteoak Capital AMC, told ET that volatility helps improve average returns to investors leaving the market amid the sell-off in the market. It is important to get the timing right, but it is not possible to predict the high and low consistently with any level of accuracy. However, he has suggested SIP (Systematic Investment Plan).

At the same time, Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, told ET that investing during a recession is most beneficial, the real benefit of SIP is seen in the long term. She believes that history shows that staying invested during market downturns leads to a strong recovery. Skipping SIPs during a downturn means missing out on buying units at lower prices, which reduces future gains. Hence, she advises investors to combine SIPs with long-term financial goals.

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