Hey friends,
Today we are understand what happens to yours fund units if you stop SIP ?
In these times of financial uncertainty, it can be common to worry about missing SIP installment payments. You can pause SIP payments or apply for a ‘SIP stop request’ with the AMC (Asset Management Company).
SIP Pause is a facility that allows investors to pause their existing SIP for a temporary period. Investors can pause their existing SIP without discontinuing it.
SIP restarts automatically after the pause period is over. This facility can be availed only once during the tenure of the existing SIP.
SIP can be paused for a minimum period of 1 month to a maximum period of 3 months.
Your SIP will be automatically cancelled if you miss 5 consecutive SIP instalment payments.
While the mutual fund house will not penalize you for non-payment, your bank could penalize you for failing to honour the regular auto debit payments therefore, it is recommended to check with the bank on the penalty charges, if any.
After your SIP is stopped, the scheme units that you have already purchased will continue to remain in your holding. If you wish to redeem your units in the mutual fund, you could put in a redemption request.
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Have you tried to stop your SIP installments in a mutual fund?
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Note -
This post should not be considered as 'investment advice'. We request the Reader to make informed investment decisions and consult their financial advisors to determine the financial implications with respect to investing in Mutual Funds.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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