Investment News: SIP i.e. Systematic Investment Plan is the most popular method of investment among the people. But for some time now it has been seen that people are closing their SIPs. There have been fluctuations in the market for quite some time, due to which investors are deciding to close their SIPs in large numbers. This is being seen for the first time in 11 months when such a large number of people are closing their investments.

What do the figures say?
According to India Today report, for the first time in the last 11 months, the number of SIPs closed has been more than the number of SIPs started. Last month, about 53.38 lakh SIPs were closed or matured, while only 52.82 lakh new SIPs were opened. These figures show changing investor behavior and increasing discomfort in view of market volatility.

Why is this happening?
Actually, fluctuations in the market are nothing new, but the volatility seen recently has troubled many investors. When investors open the app and see their account red, they get nervous. In fact, in many funds the returns from one year and two year SIPs have become negative, which is quite disappointing. In such a situation, people feel it is better that they stop it.

The decision is right in some circumstances
However, in some circumstances the decision to stop SIP may also be right. For example, if you have lost your job, there is a serious financial crisis, or the investment target has been achieved, then you can stop SIP, this will be considered the right decision. Apart from this, if a fund is not working i.e. it is not getting any significant returns then it may be better to transfer the fund instead of closing it.