The Chhoti SIP scheme has demonstrated significant growth, with total registrations rising to 322,000 by June 2026 from 197,000 in April 2025, according to data from the Securities and Exchange Board of India (Sebi). Monthly additions have averaged around 28,000 since September 2025, while closures have averaged about 20,000 during the same period. However, discontinuance rates remain elevated, with more than 26,000 SIPs closed in May 2026 alone, as reported by Business Standard.
Industry participants and the Association of Mutual Funds in India (Amfi) attribute the high discontinuance rates to first-time investors' vulnerability to market volatility. The West Asia conflict and other geopolitical tensions have maintained elevated market volatility over the past year, while inflation driven by these conflicts has impacted household budgets. As noted by Venkat Chalasani, CEO of Amfi, these factors make some investors pause or discontinue their investments, leading to gradual adoption pace as first-time investors lack experience with market cycles.
Despite high discontinuance rates, the scheme's Assets Under Management (AUM) have nearly doubled, increasing to ₹184.2 crore by May 2026 from ₹96.74 crore in April 2025. According to Business Standard, this suggests net inflows have remained positive and investor stickiness, while under pressure, is gradually improving. The ₹250 SIPs are estimated to break even for fund houses within two years due to subsidised onboarding costs, as reported by Sebi.
For SBI Mutual Fund, which launched the first ₹250 'Jan Nivesh SIP', the discontinuance rate stood at 35.64% as of April 1, 2026, with 81,570 registrations and 29,072 ceased in FY26. As reported by Business Standard, the fund house noted that due to low ticket size and first-time investor profile, this product may experience higher discontinuance rates compared to other SIP products. However, monthly discontinuations declined to 26,000 in May 2026 from 34,000 in April 2025, showing signs of moderation in absolute terms.
Industry participants expect retention ratios to improve as the product matures and first-time investors become more familiar with investing and market cycles. According to Business Standard, Amfi's Venkat Chalasani emphasized that investor education and continued hand-holding will be crucial to help first-time investors understand goal-based investing and staying invested through market cycles. The broader SIP ecosystem continues to record monthly growth, with several fund houses offering small-ticket SIPs starting from as little as ₹50, bringing combined assets under management to around ₹2,000 crore.
