The volatility in the Indian stock market from October to November has led to a decline in interest in equities by retail investors investing through Systematic Investment Plans (SIPs), the data suggests.

The rate of SIP closures in the last month of November has been the third highest ever. It has been the fourth consecutive month in which the ratio of SIP account closures has increased and has reached the third highest for the year.

The data from the Association of Mutual Funds in India (AMFI) shows that a total of 49 lakh new SIP accounts were opened in November, which is significantly lower than the 63.70 lakh opened in October.

On the other hand, the number of accounts closed increased to 39.10 lakh in November from 38.80 lakh in October.

Thus, the percentage of SIPs closed against new SIPs opened in November was 79.79%, the highest after 88.38% in May.

As the Indian stock market is currently going through a phase of volatility, new investors are choosing to stay away from entering the market, said AMFI sources. Existing investors are also hesitant to pour more money.

Equity mutual fund inflows fell 14.20% to ₹35,943.49 crore in November and overall inflows in the fund industry stood at ₹60,295 crore last month, against ₹2.40 trillion in October. 

Overall inflows in the fund industry in November were 75% lower than in October, according to AMFI data. The number of new demat account openings in November was less than 32 lakh, a seven-month low.