Archive · 18 Jan 2026
Investors Stop SIPs Midway, Costing Long-Term Wealth
Systematic Investment Plans (SIPs) are a way for people to invest money regularly, even when the market is down.
This helps them buy more shares when prices are low, which can make them wealthier over time.
However, many people stop their SIPs when the market is volatile or when they need money for emergencies.
This is a big mistake because the real power of SIPs comes from staying invested for a long time.
When people stop their SIPs early, they miss out on the best days of market growth and the compounding effect, which means they could have much less money in the long run.
Experts advise that staying invested through good and bad times is the key to building wealth.
The SIP stoppage ratio in India has been increasing, reaching 98.98% in FY26.
Market volatility, lower returns, and liquidity stress are major reasons for investors quitting SIPs.
Investors in regular plans (with professional advice) tend to stay invested longer than those in direct plans.
Stopping SIPs early can significantly reduce long-term wealth due to missed compounding and market rebounds.
The cost of missing the market's best days can cut overall returns by more than half.
- Who
- Retail investors in India
- What
- Stopping Systematic Investment Plans (SIPs) midway
- When
- Increasing trend over the past five years, peaking in FY26
- Where
- India
- Why
- Market volatility, lower-than-expected returns, liquidity stress, and behavioural biases
- SIP Stoppage Ratio (FY26)
- 98.98%
- SIP Contribution (FY26)
- Rs 2,566.55 billion
- Direct Plan SIP AUM (>5 Years)
- 19%
- Regular Plan SIP AUM (>5 Years)
- 33%
- Equity Return Assumption
- 12%
- Corpus at 5 Years (Rs 5,000 SIP)
- Rs 4 lakh
- Corpus at 10 Years (Rs 5,000 SIP)
- Rs 1.1 million
- Corpus at 15 Years (Rs 5,000 SIP)
- Rs 2.3 million
- Corpus at 20 Years (Rs 5,000 SIP)
- Rs 4.6 million