Mutual Fund SIP Cancellation
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.
Two Process to Stop SIP:
- Online
- Offline
- Through – Distributor
- BSE / NSE Platform
- MF Utility Platform
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.
Offline SIP Stop Process:
This process is same for all mutual fund SIP.
- First step to Download SIP Download Form
- Fill up details- as per your folio.
- Name as per Folio
- Folio No
- SIP Date
- SIP Period – SIP Start date & SIP End Date
- Bank Details – Bank Name, Account No.
- SIP Amount
- SIP Stop Month (Current or Next month)
- This SIP Stop Form submit to Fund House or Registrar Office
- Take acknowledgment slip for further communication.
- Within 5 to 10 days you received SIP Cancel message or mail.
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.
All Mutual Fund SIP Cancellation Form PDF
SIP Cancellation FAQ
When you cancel SIP the next installment will not be deducted the funds from your bank account. Investment you have made is not affected.
If you decide to keep the balance unit in your regular investment. Do you want to take out your investment? You can cash it out. You will not be penalized but the scheme will are subject to exit load according to rule.
The last 12 months of the sip unit is eligible for exit load. Check exit load in your statement below scheme unit details.
Normally every AMC Charge 1% exit load.
e.g. – Last 12 month investment (SIP Amt 2000*12) 24000 then exit load is approximate 240.
What is lock-in period in sip?
In mutual funds, the term “lock-in period” describes the period of time during which investors are unable to sell or withdraw the funds or unit they have acquired.
No Lock-in period for your regular SIP. You can redeem your regular fund anytime, as scheme charges any exit load then deduct exist load as per mention in scheme.
The investment options in ELSS (80C Tax Saving Scheme) or an equity-linked savings scheme are accompanied with a mandatory lock-in time of Three years .
The retirement plan will come with the option of locking in for at most five years or until retiring age, whatever comes earlier.
You cannot withdraw funds before to maturity if you acquire a closed-ended fund. However, you can sell on the stock exchange.
How much charge for Sip Cancellation?
Mutual Fund House not charging any fee for SIP cancellation purpose.
What is cancellation of SIP?
Any reason you not continue your mutual fund SIP plan. That time you cancel your SIP.