SIP Tips: Thinking of stopping your SIP? 5 reasons why stopping your SIP is the right decision..

Systematic Investment Plan: If you're running a mutual fund Systematic Investment Plan (SIP) and are considering discontinuing it, it's not necessarily a wrong move. There are times when stopping your SIP can be a wise decision.

Wealth advisors generally advise against discontinuing a Systematic Investment Plan (SIP), especially when the market is falling. During these times, Rupee Cost Averaging offers an opportunity to buy cheaper units. But there are exceptions to every rule.

SIP closure data shows you're not alone:
44.03 lakh SIPs were closed in September 2025, compared to 41.15 lakh in August—an increase of nearly 7%. Last year, 40.31 lakh SIPs were closed in September 2024. This includes SIPs whose maturity period had already expired.

Number of SIPs discontinued by month
September 44.03 lakh
August 41.15 lakh
July 43.04 lakh
June 48.16 lakh

These are the 5 right reasons to stop a SIP:

1. Financial goal achieved: If you have achieved your investment goal, stopping a SIP is the right step.

2. Want to diversify your portfolio: It may be better to stop a large SIP and start smaller SIPs in different schemes.

3. Want to improve your investment in the wrong fund: If you have invested in the wrong fund, invest in the right place through STP (Systematic Transfer Plan).

4. Sectoral funds are losing money: It would be better to switch to an index fund rather than suffer losses for a long time.

5. Financial emergency: Stopping a SIP in case of emergency may be wise, not a compulsion.

SIPs are long-term investments, but if your financial situation or goals change, it's okay to pause them. It's important to make every decision thoughtfully and with advice.

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