The 20% Leak In MF Bucket

This implies that roughly one in five SIP accounts is either in pause mode or suffers transaction failures each month. In February 2025, 82.6 million of 101.7 million active SIP accounts contributed to the Rs 26,000 crore SIP inflow. 

A SIP account is considered inactive after three consecutive failed transactions for daily, weekly, fortnightly, or monthly plans. For other plans, two consecutive failed instalments lead to discontinuation. 

In April 2024, the contributing SIP percentage was 73 per cent, compared to 81 per cent in February 2025. SIP closures have spiked in recent months amid equity market volatility. February saw a shrinkage in the total number of SIP accounts for the second month on the trot.

The total number of active SIP accounts fell by 1 million to 101.7 million in February, following a net closure of 500,000 in January. However, closures in January and February were driven by different segments. Regular plan SIP accounts shrank by 800,000 in February, marking the first monthly slide in over a year.

In January, the reduction came from the direct plan or do-it-yourself segment. Despite the closures, the contribution from SIPs remained steady. The collection in January and February closely mirrored December s inflows. SIP accounts brought in Rs 26,400 crore in January and Rs 25,999 crore in February. SIP inflows, which have shown resilience over the past three to four years, have provided key support to the equity market, particularly during periods of volatility.

While SIP inflows have held steady, lump sum inflows have sharply declined in recent months. Gross lump sum investments fell to around Rs 33,000 crore, down from Rs 44,800 crore in January and Rs 50,500 crore in December 2024. This decline in lump sum investments was the primary driver behind the 26 per cent month-on-month drop in net investments into equity schemes.