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Mumbai, Aug. 27 Over four lakh systematic investment plan (SIP) accounts have been closed during the last few months, the RBI said in its annual report.

This would constitute over 10 per cent of the SIP accounts with the Indian mutual funds industry, which, according to Value Research, has an estimated 35 to 40 lakh SIP accounts.

The RBI, however, did not spell out the reasons for the closure of such a large number of SIP accounts.

“I have some reservations on such a high number of SIP accounts getting closed over the last few months,” Mr Dhirendra Kumar, CEO, Value Research, said. The Association of Mutual Funds in India does not furnish details on SIP accounts in its monthly mutual fund data.

“A downturn in the market and subdued NAV (net asset value) movement of the mutual fund units could have catalysed and accelerated the discontinuation of SIP accounts,” Mr Kumar said.

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