New records of SIP account closure in India! Record high of 61.33 lakh accounts closed in January

What has made mutual funds a little less in giving returns is that there has been a panic among investors. Even investors who consider SIPs as the first step to investing have become fearful of losing money. As a result, SIP (Systematic Investment Plan) accounts are getting closed. According to data from the Association of Mutual Funds in India (Amfi), 61.33 lakh people closed their SIP accounts in January alone. At the same time, only 56 lakh 19 thousand people opened their new SIP accounts. As a result, the number of people opting out of SIPs is increasing as compared to the number of people investing in SIPs. If the number of SIP account closures continues to rise, it could spell doom for the entire mutual fund industry in India. SIP account closures in India are setting new records. The record of closing 61 lakh 33 thousand accounts in January is the highest so far. The month of December also broke all previous records of closing SIP accounts. In the month of December, 45 lakh SIP accounts were terminated. That was an all-time high for the month. Earlier, 44 lakh SIP accounts were closed in May 2024. 
The trend of investors closing SIP accounts has left market leaders worried. The concern of the stock market leaders is that earlier SIP investors were not affected by immediate market fluctuations and used to get good returns through long-term investments. But this trend of creating wealth from long-term investment in SIP investors is coming to an end. SIP investors look at the return on their investment in long-term compounding based on the value of the rupee. Despite this, the lack of account opening is worrying.