Bhopal (Madhya Pradesh): Madhya Pradesh’s systematic investment plan (SIPs) closure ratio is 5% of the country. In backdrop of share market bloodbath, against Rs 56.19 lakh new SIPs registered, Rs 61.33 lakh were discontinued. As per share market and mutual fund analysts, SIP cancellations happen for various reasons, including fund redemption due to reaching goal, switches and STPs.
Retail investors are now worried because of the continuous fall in the share market. It is very difficult for common investors to see their portfolio bleeding daily. This leads to shaking up their confidence in an equity asset class whereas other asset classes like gold and debt are giving steady and superior returns.
Santosh Agrawal, president of Bhopal Share Market Association said, ‘SIP closure may be due to switching over from mid-cap investment to higher-cap investment through mutual fund in share market.’ Abhishek Singhai of financial stock trading said, ‘Rs 61 lakh is amount of SIP closure. Generally during decline in market, share traders who have invested in mid-cap category, switched over to high-cap category in mutual fund which support the share market.
Most of these cancellations have started coming on direct mutual funds which depicts that investors who invest on their own without laying down investment strategy trends.’ Aditya Manya Jain, MD Kalpatru multiplier limited said, ‘SIP worth Rs 61 lakh is closed in the country and its 5pc share is of Madhya Pradesh. Main panic is among mid-cap investors in mutual fund. However, it is not a major gap as against Rs 56.19 lakh new SIPs registered, Rs 61.33 lakh were discontinued.’
