SIP discontinuation drops in May as equity markets hit new record highs

Systematic investment plans (SIPs) discontinuation in May at 660,000 was lowest since June 2020. The surge in equity markets helped boost returns and investor sentiment, with many of them deciding to continue with their monthly investments. The benchmark Nifty rallied close to 7 per cent in May and surpassed its previous all-time highs made in February.

In the last few months SIPs discontinuation were in the range between 700,000 and 800,000. The closure figure includes SIPs that were discontinued and the ones whose tenure gets completed.

Jimmy Patel, MD and CEO at Quantum AMC said, “Despite the ongoing pandemic, industry