New Delhi, Aug. 10 -- While monthly systematic investment plan (SIP) contribution numbers have remained steady for the mutual fund industry, the SIP closure ratio-discontinued SIP accounts as a percentage of new SIP accounts-has been rising. Experts attribute this to stock market volatility.

A closer look at the data suggests do-it-yourself investors may be quitting SIPs without giving them enough time. The number of five-year-plus SIPs in direct plans-which carry lower expense ratios as they exclude distributor commissions-shrank by around 35% in FY26. The number of 4-5-year SIPs fell around 23%, while 3-4-year SIPs declined 56%. To be sure, SIPs running for less than two years grew close to 19% over the same period.

Industry experts s...