The cancellations of accounts for systematic investment plans (SIP) in equity funds touched a new high of 1. 54 million in Dec 2022 amid declining one-year rolling equity returns, showed the data from the AMFI, reported The Economic Times.
The number is even higher than the previous peak that stood at 1. 25 million in January 2022. The average monthly stoppages of SIP plans touched 1.08 million in the past 12 months, said the report.
The 12-month rolling return of the BSE Sensex fell to a measly 0. 5 percent in December compared with 2 percent a year before, it added.
Due to higher cancellations, the SIP stoppage ratio — the number of SIPs that were discontinued for every new SIP registered — touched a 28-month high of 0. 6 in December, as per the report.
The net SIP account addition for the month moderated to 790,000 compared with the one-year average of 1.1 million.
In 2022, the number of SIP accounts increased by 12 million to 61 million. In the previous year, 14 million new accounts were created.
The total monthly SIP book expanded for the fifth month in a row reaching a record 13,573 crore in December.
The swelling SIP inflows amid higher cancellations show that new investors continue to pour more money than the average ticket size, which was ₹2,216 in December compared with ₹2,200 in the previous month, added the report.