SIP Contribution

What does the Systematic Investment Plan (SIP) Data for FY 22-23 mean to Retail Investors?

SIP Contribution

AMFI (Association of Mutual Funds in India), has published a data, which reveals, F.Y. 2022-23 and within the FY, month of ‘March 2023’ witnessed highest SIP amount contribution in last 7 years.

It is appreciated that the investors are getting aware of the SIP route of investment and investing in the market through systematic way.

SIP amount collected from F.Y. 2016-17 onwards is indicated as under:

SIP Contribution

SIP Contribution - Yearly


As we can see from, monthly contribution in SIP during F.Y.2022-23 is also improved.


This data clearly indicates that investors are becoming aware about their investment. It is a good sign. Discipline and continuity in investment matters a lot and makes a huge difference in long term.

However, every coin has two sides. And the question arrives when we see the data on the other hand.

Below is the data published by AMFI w.r.t. discontinued SIP in last two years.

SIPs Discontinued

(SIP Count in Lakh)



SIP Discontinued FY 22-23



As we can see, no. of SIPs that are discontinued in F.Y.2022-23 are 143.15 lakhs (count) and it was 111.17 Lakhs in F.Y.2021-22. Further, this number is increased in March 2023 if we compare it with April 2022. That simply means, the number of SIPs that stopped in last FY had increased. People have stopped their SIPs which may not be recommended in every scenario.

One of the reasons for could be, investors are stopping their SIPs due to lower returns in the short-term or switching SIPs just by looking peer performance in short-term. But, judging the SIP performance in short-term is not a good way.

So, if we see this from different perspective, the mutual fund can offer you great returns, but are you ready to take it? The only way to get this return is to stay invested for a longer tenure

Let’s take an example of “Canara Robeco Bluechip Equity Fund” Regular plan.

Fund Name Returns (%) p.a.
From April 2017 to April 2020

(3 years)

From April 2017 to April 2021

(4 years)

From April 2017 to April 2023

(6 years)

Canara Robeco Bluechip Equity Fund Regular plan.  






Do not panic and take any decision just by looking at negative returns in Equity SIP in Short-Term.

Canara Robeco Bluechip Equity Fund Regular plan has offered 12.77% over 6 years & 17.08% over 4 years, but only for those who stayed invested in that period. You will get the benefits of SIP in longer term as the compounding works well in long-term only.

It is okay to stop your SIP only in few scenarios, for example,

  1. If you have started the SIP for a particular goal and that goal has arrived.
  2. Your SIP is continuously underperforming as compared to its peers when the others are showing positive returns and market is up.
  3. There are some fundamental changes in the fund which is not in line with your financial goals.
  4. You want to rebalance your portfolio (Equity & Debt) according to your risk appetite and you need to reduce equity exposure.
  5. You are close to retirement and you need to reduce equity exposure (if you have larger investment in risky assets).

Apart from above reasons, experts do not recommend to stop SIP just looking to short-term lucrative returns of other funds.

Compounding in SIP is like a nurturing a plant. Initially, the corpus would be negligible. However, after few years, it will automatically help you create wealth. It’s like a snowball effect. You can reap the benefits only in long term.


Investment Services in Nashik, Investment Services in Thane, Investment Services in Jalgaon, Investment Services in Pune

Leave a Reply