4.5 million SIP accounts CLOSED: Is Mutual Fund shine fading?

SIP is considered the safest option for big returns in a short time. But December 2024 was not good for SIPs. Because in December, lakhs of people closed their SIP accounts.

However, mutual fund SIP is the most popular investment option for the middle class. Calculations say that 4.5 million SIP accounts were closed in December last year. This number is the highest ever in terms of account closures in a month.

Mutual fund SIP investors, unconcerned about immediate market gains or losses, continued investing in anticipation of large long-term returns.

However, investment experts are quite concerned after seeing the trend at the end of last year. Because, there is a reluctance to invest in the long term among mutual fund investors.

Before December, about 44,000 SIP accounts were closed in May 2024. This was the highest record for SIP account closures in a month at that time.

Experts believe that the trend of long-term investment among SIP investors is declining after the December setback in the mutual fund sector.

The number of new SIP accounts opened in December also decreased abnormally. Because only that month's

That is, not only 4.5 million SIP accounts were closed in December, but the number of new accounts opened has also decreased significantly.