How to stop SIP

You can stop your SIP investment online by visiting the website of the Asset Management Company (AMC) where your SIP is registered. You'll need to log in to your account, select the SIP you want to cancel, and click the "Cancel SIP" option. The AMC will process your request and stop automatic payments, but your investments will remain in the fund.
EXPLORE FUNDS
How to Stop Mutual Fund SIP?
EXPLORE FUNDS
4 mins
25-November-2024

Wondering how to stop SIP in 2024? While it's a straightforward process, understanding the steps involved is crucial. You can either opt for the offline method by notifying your bank and the respective asset management company (AMC) or seek assistance from your mutual fund agent. For a detailed guide on the offline SIP cancellation process, including obtaining the necessary forms from AMCs or online Mutual Fund Registrar and Transfer websites like CAMS and KFin Technologies Limited, be sure to read the full blog.

What is a Systematic Investment Plan (SIP)?

A Systematic Investment Plan (SIP) is a disciplined and convenient approach to mutual fund investing, designed to help individuals build wealth systematically over time. In a SIP, investors commit to investing a fixed amount at regular intervals, typically monthly. This investment strategy is particularly attractive for those looking to enter the financial markets without the need for a large lump sum. SIPs offer flexibility, allowing investors to choose the amount they want to invest in each installment, making it accessible to a wide range of investors with varying financial capacities.

How to stop mutual fund SIP temporarily?

If you require additional funds for a short period, consider temporarily suspending your Systematic Investment Plan (SIP) rather than cancelling it outright. Here's a step-by-step guide on how to achieve this:

  1. Contact your bank:
    • Reach out to your bank and request the suspension of the auto-debit facility associated with your SIP payments.
    • Clearly communicate the intended duration of the suspension and the anticipated date for its reactivation.

Important note:

  • Temporary suspension limit: Please be aware that SIPs can only be suspended for a maximum of two months.
  • Automatic cancellation: If no action is taken to reinstate the SIP after the two-month period, it will be automatically cancelled by the Asset Management Company.

To avoid unintended consequences, it's crucial to ensure that your SIP payments are resumed within the specified timeframe.

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Frequently Asked Questions

Can an investor stop all the SIPs at the same time?

Yes, an investor can choose to stop all their SIPs simultaneously.

How long does it take to redeem SIP?

The time taken to redeem your SIP investment can vary depending on the mutual fund house or financial institution. In most cases, SIP redemptions are processed within 3 to 7 business days.

Is there any penalty charged for canceling a SIP?

Cancellation of a SIP typically does not incur a penalty. SIPs offer flexibility, and investors can stop their SIPs at any time without facing a penalty. However, it's essential to be aware that if you redeem your SIP units before the completion of the SIP tenure, you may be subject to exit loads or other charges, depending on the terms and conditions of the specific mutual fund scheme. These charges can vary among different fund houses and schemes, so it's important to review the fund's offer document for details on any applicable exit loads or penalties.

Can I cancel my SIP online?

Yes, most mutual fund companies or brokers offer online platforms for SIP cancellations through their websites or mobile apps. You can usually log in, select the SIP you wish to cancel, and follow the provided instructions.

Can I cancel my SIP anytime?

Yes, you can cancel your SIP at any time without specific restrictions.

What if I cancel my SIP before maturity?

Canceling your SIP before maturity simply means that you are discontinuing future investments. It does not affect the units you have already purchased through your existing SIPs, and they continue to be part of your investment portfolio.

When should I stop my SIP?

You can stop your SIP at any time, depending on your financial goals and needs. Common reasons to stop include achieving your investment objective, financial constraints, or a change in investment strategy.

Can I restart SIP after cancellation?

Yes, you can restart your SIP after cancellation. If you have canceled your SIP due to temporary financial constraints or other reasons, you can initiate a new SIP in the same or a different mutual fund scheme when you are ready to invest again.

If I cancel my SIP will I get a refund?

No, cancelling your SIP doesn't entail a refund of the invested amount; it stops future investments.

Will SIP continue after redemption?

No, once you redeem your SIP, it ceases to continue, and no further investments are made.

Will I get my money back if I cancel my SIP?

No, cancelling your SIP doesn't result in immediate return of invested money; it stops future investments.

Can I stop SIP without redeeming?

Yes, you can stop SIP without redeeming, halting future investments while leaving existing investments untouched.

What happens if I delete SIP?

Deleting SIP essentially stops future investments; it doesn't affect existing investments or entail immediate refunds.

How much time does it take to cancel SIP?

Cancelling SIP typically takes a few business days, depending on your mutual fund provider's processing time.

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