Mutual funds are a great investment option for those who want to save for the long term. But what happens if you need your money back before the plan is over?
Stopping SIPs can be a difficult task for many people. The most common thing to do is to sell the fund, but there are other ways to stop SIPs as well.
Here’s why you should cancel your mutual fund SIP:
One of the main reasons to cancel your mutual fund sip is because of under performance.
Another reason to consider cancelling your sip is if the investment strategy of the fund isn’t aligned with your goals or risk tolerance . For example, if you’re invested in an aggressive stock market index fund but you need access to cash within the next 2-3 years for a home purchase , then it might not make sense to continue pouring more money into that investment since there’s a chance you could lose some or all of it when markets inevitably correct.
How to cancel your Mutual Fund SIP?
You must inform the fund house that your SIP is being cancelled in order to do so.
When you finish this step, the fund house will not request a money withdrawal from the bank.
The next time you register a SIP, you can use the previous NACH mandate for your new SIP. New NACH mandate not required to be registered.
Online SIP Stop Process:
Each fund house has a different process.
- First Login in your Folio
- Select the SIP that has to be cancelled currently and select “cancel SIP.”
- Press Submit Button
- Shortly received SIP Cancel message.
- This process Stop your SIP.
