Thinking of skipping your SIP instalment this month?
Perhaps, you think this is harmless. Afterall it’s just a one-month break from your SIP. What could go wrong?
So, why not, go for that one extra dinner out. Or maybe catch an extra movie this month.
But in reality? That skipped SIP might be the costliest decision you make all year.
If you think I am overstating this, I won’t blame you. We are all programmed to think that little misses don’t matter. But the truth is they do.
Think of an SIP instalment like a brick that’s part of for your future home. Pull out enough bricks, and the house crumbles. It doesn’t matter if it was intentional or “just this once.”
You see, the problem isn’t the money you save today by skipping one instalment. It’s probably a pittance. But what’s crucial here is the years you lose making up for that lost instalment. SIPs rely on time, discipline, and habit. And when you hit pause, all three start slipping through your fingers.
If you’ve ever justified skipping an SIP, read on. These are the five hidden costs that can wreck your long-term wealth. I will also share what you need to do before the damage becomes permanent.
#1 You don’t just skip ₹5,000; you burn around ₹5 lakh in the process
Like I said earlier, missing one SIP feels harmless. But let’s see the math.
Say you invest ₹5,000 every month for 20 years, earning 12% annually. You’d accumulate ₹49.5 lakh. But skip SIPs for just one year (₹60,000 in all) and your final corpus drops by over ₹6.1 lakh.
That’s the opportunity cost of ₹6.54 lakh lost, not just ₹60,000.
Why? Because compounding punishes inconsistency. That money didn’t just sit idle; it missed the chance to grow year after year.
What felt like a relief this month? It’ll feel like regret when you’re 55, and short of the money to fund your retirement or pay for a life-saving surgery.
The SIP Stoppage Ratio: A Red Flag for Every Investor
If you think you’re alone in pausing your SIP, think again. According to official AMFI data, in April 2025, the SIP stoppage ratio spiked to a record 297.74%. That means for every 100 new SIPs registered, nearly 298 were discontinued.
A quick explainer: SIP stoppage ratio is the number of SIPs discontinued as a percentage of new SIP registrations. It signals how many investors are breaking their investing discipline.
This historic surge was largely due to a one-time cleanup drive by AMCs and RTAs that cleared out dormant and non-performing SIP folios—many of which hadn’t seen inflows for months. But the data still delivers a warning: skipping SIPs is more common than you think, and often, it’s permanent.
By May 2025, the stoppage ratio dropped to 72.12%, a more normal but still concerning level. Even though SIP inflows hit a record ₹26,864 crore that month, nearly three out of every four SIPs were being shut down.
This is more than a statistic. It’s a mirror. A signal that even as markets rise, discipline is falling. And for those who’ve exited, the real cost may not be obvious until much later—when they fall short of their goals.
Don’t become a part of that statistic.
#2 You miss the crash but also miss the goldmine that follows
Market corrections scare people. But for SIP investors, they’re the hidden jackpot.
When markets fall, SIPs scoop up more units at lower prices. Over time, this lowers your average cost and boosts your returns. It’s like buying more of the same quality at a discount.
But most investors do the opposite. They pause SIPs during dips, thinking they are protecting themselves. In reality, they are locking themselves out of future gains.
Imagine this: the market crashes by 25%, and you pause your SIPs for three months. But just six months later, the market starts recovering sharply. The rebound phase, when prices are still low but rising, offers one of the best chances to accumulate more units at a lower cost.
If you had continued your SIPs, those low-cost units could have grown significantly during the recovery, potentially even doubling in value. But by skipping, you miss out on that critical compounding opportunity.
Skipping during a crash is like walking out of a store the moment everything goes on sale.
#3 Your dreams don’t wait, but skipping means you will
You don’t invest just to invest. You do it to get somewhere, maybe to retire early, buy a house, and give your kids the best shot at life.
Each SIP is mapped to a goal. When you skip, you’re not pausing an app notification; you’re breaking a contract with your future.
Worse? Catching up later isn’t easy. You’ll either have to contribute more per month (which may not be feasible) or extend your goal timeline (which you may not be able to afford).
A skipped ₹5,000 today means you might need to find ₹15,000/month five years from now to stay on track.
And by then, it might already be too late.
#4 Inflation doesn’t pause when you do; it keeps eating
If you’re not investing, you’re not standing still. You’re moving backwards.
Prices rise every year, sometimes slowly, and sometimes rapidly. But rise they will. And when your SIPs stop, your money stops growing. But your expenses don’t.
A ₹5,000 SIP skipped monthly for a year might feel minor. If inflation is around 6% each year (as it usually is in India), your future purchasing power will take a hit.
The ₹1 crore you thought would be enough for retirement? If you pause now, it might only cover the basics. No holidays. No comfort. Maybe not even dignity.
Skipping SIPs during inflation is like stopping a treadmill while it’s still running. You’ll stumble and fall.
#5 Skipping one month can unravel years of discipline
You’ve automated your SIPs. You’ve been consistent for years. But this month, you have an emergency. So, you hit pause.
What don’t you see? That one pause breaks the rhythm. And once broken, habits resist repair.
You get used to having that extra cash. You start believing it’s okay to skip another. And before you know it, 6 months have passed and your investing muscle has atrophied.
Investing is 20% strategy, 80% behaviour. SIPs work not because of high returns, but because they keep you in the game, month after month.
One break, and that psychological momentum crumbles.
What to Do Instead of Skipping? Downshift, Don’t Detour
If you’re financially stressed, don’t quit. Recalibrate.
- Lower the SIP amount. Even ₹500/month keeps the habit alive.
- Tap into emergency funds, not your SIP, when life gets tough.
- Automate your SIPs so they go unnoticed. The less you think, the more consistent you stay.
The worst thing you can do is abandon the journey. Even the smallest monthly contribution is a step forward.
Skipping SIPs isn’t harmless; it’s a financial emergency
It doesn’t feel like a big deal now. But skipping SIPs chips away at the very structure you’ve built to protect your future.
When goals fall short, dreams stay dreams, or emergencies drain your savings, it all links back to consistency. Or the lack of it.
This isn’t about guilt. It’s about clarity.
Every SIP you skip is money you’ll wish you had when you need it most.
Show up. Every month. No matter what.
Disclaimer
Chinmayee P Kumar is a finance-focused content professional with a sharp eye for investor communication and storytelling. She specializes in simplifying complex investment topics across equity research, personal finance, and wealth management for a diverse audience from first-time investors to seasoned market participants.
Disclaimer: The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is not a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.