There are often times when investors find it necessary to halt their SIP plans. This decision is typically driven by financial challenges or concerns about a potential market downturn. Additionally, investors might choose to stop their SIP investments upon reaching their financial goals or if the fund’s performance is lacking.
A Systematic Investment Plan (SIP) is structured to run until the end date specified in the application. However, some mutual funds now offer a ‘PAUSE’ option after a certain period. This feature helps maintain the investor’s saving habit while providing temporary liquidity. Once the pause period is over, the SIP resumes automatically.
Pause Period: Investors can pause their SIP for a designated time, which is determined by the asset management company.
Form: To initiate a pause, investors need to complete a SIP pause form. This form can be obtained from the asset management company or an investor service center, and it is also available for download on the mutual fund’s website.
To ensure a smooth process, please make sure to include the start and end dates for the ‘pause’ in the form. Additionally, the current details of the SIP should be provided. Don’t forget to include the investor’s name and folio number. It’s important that all unit holders sign the SIP pause form.
Regarding the bank mandate, you will need to include this in the form as well. This allows the asset management company to notify the bank not to withdraw funds from the account during the ‘pause’ period.
For submission, please send the SIP pause form to the asset management company at least one month prior to the intended pause. You can submit this form at any branch office of the asset management company.
Once the pause period concludes, the SIP will automatically resume.
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