Investors often need to stop an SIP for various reasons, from financial emergencies to portfolio restructuring. Whether you're facing market volatility or need immediate access to funds, knowing how to stop an MF SIP is required to protect your investment journey. This guide walks you through the complete process to stop an SIP efficiently, ensuring you understand all available options and their implications on your financial goals.
Preparing to stop your SIP investment
If you are thinking about how to stop an SIP and plan to do it in the near future, then you need to gather all necessary information and evaluate the potential impact on your long-term financial objectives. This preparation phase helps ensure that your decision aligns with your overall investment strategy.
Essential documents and information needed
- Your folio number
- PAN card details
- Bank account number linked to the SIP
- Scheme name
- SIP amount
- Preferred termination date
- Recent account statement
Having the above-mentioned documents organised beforehand streamlines the cancellation process, regardless of whether you choose the online or offline route.
Evaluating the impact on your financial goals
Before you stop an SIP, carefully assess how this decision affects your financial roadmap. Consider:
- Will stopping disrupt your long-term wealth creation plans?
- Are there alternatives like temporarily pausing instead of cancelling?
- How will this affect your portfolio diversification?
- Is this a reaction to market volatility or a genuine financial need?
Step-by-step guide to stop SIP investments
Step 1: Review your SIP terms
Check terms and conditions to understand:
- Any penalties for early termination
- Specific cancellation procedures unique to your fund house
- Options for pausing versus complete cancellation
Step 2: Choose between pausing or cancelling your SIP
The decision of choosing between pausing or cancelling depends on your circumstances; you might prefer to temporarily pause rather than permanently stop an SIP.
- Pausing: Most fund houses allow suspension for 3-6 months
- Cancelling: Permanent termination requiring a new registration to restart
For temporary financial constraints, pausing offers flexibility while maintaining your investment strategy for the long term.
How to cancel an SIP offline?
- Obtain the SIP cancellation form from your Asset Management Company (AMC) or a distributor through which you made mutual fund SIP investments or download it from their website
- Fill in all required details including folio number, scheme name, and PAN
- Submit the completed form at any AMC branch or distributor
- Retain acknowledgement receipt for your records
How to cancel an SIP online?
Online cancellation offers convenience through multiple channels:
- AMC website/app method:
- Log in using your credentials
- Navigate to the 'Systematic Transactions' section
- Select the SIP you wish to terminate
- Confirm your cancellation request
- KYC Registration Agency (KRA) portals:
- Access platforms like CAMS or KFin Technologies
- Select 'My Transactions' followed by 'Systematic Transactions'
- Locate your active SIP and click the 'Cancel' option
- Verify the cancellation details before submission
- Through your online distributor platform:
- Log in to your account
- Navigate to the SIP management section
- Select the relevant fund and click on cancellation option
Conclusion
Understanding how to stop an MF SIP properly helps protect your financial interests while maintaining good standing with fund houses. Whether you choose to pause temporarily or cancel permanently, following the proper procedure ensures a smooth transition and keeps your investment options open for the future. Remember that strategic pausing might be preferable to complete cancellation if your financial constraints are temporary.
Also Read: Does NAV matter in Mutual Funds?
FAQs
Can I restart my SIP after stopping it?
Yes, you can restart your SIP after stopping it, though you'll need to complete a new registration process.
Are there any charges for stopping an SIP?
Generally, there are no direct charges for stopping an SIP. However, some funds may have exit loads if you withdraw your invested amount within a specified period after stopping the SIP. Review your fund's terms carefully to understand potential implications before making your decision.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
Mutual Fund investments are subject to market risk, read all scheme related documents carefully. Axis Bank Ltd is acting as an AMFI registered MF Distributor (ARN code: ARN-0019). Purchase of Mutual Funds by Axis Bank’s customer is purely voluntary and not linked to availment of any other facility from the Bank. T&C apply.
