Systematic Investment Plans, or SIPs as they are called, are popular among investors because of the various benefits they aim to provide. By choosing SIPs, you can invest regularly in a disciplined manner. Moreover, through SIPs, you can also invest affordable amounts (starting at INR 500/month) and can reap the benefits of mutual fund investments.
SIPs are generally done with a view to create a corpus for future financial goals. However, goals change and so it becomes necessary to make changes in your SIP investments too. Thankfully, Asset Management Companies (AMCs) allow modifications in SIP investments making them flexible. You can, therefore, increase your SIP amount, pause your SIP investment for a specified tenure and even stop the SIP investment altogether. Though the process is simple, do you know how you can change these SIP instructions?
If you don’t or if you are unsure about the process, here is how you can step-up, pause or stop your SIP -
How to step-up SIP investment?
Step-up means increasing the amount of SIP investment. You can do so either in an existing SIP or when buying a new SIP. When you are buying a new SIP and you would want to opt for the step-up option to increase the SIP amount periodically, you would have to fill up a step-up SIP form available with the AMC and submit it when buying the SIP. Thereafter, at the prescribed intervals, the SIP amount would increase at the specified rate. If, on the other hand, you want to step-up the amount of an existing SIP, give the step-up instruction to the AMC. You can do so online, if the AMC allows online instructions, or you can fill up a SIP modification form stating the details of the step-up and submit it to the nearest branch of the AMC.
How to pause SIP?
Pausing a SIP is when you decide to pause investments into a mutual fund scheme for a pre-defined period. This can be done when you have insufficient funds due to unavoidable circumstances. To pause your SIP, you should first check whether your AMC allows such an option. If it does, you should fill up a pause SIP form and submit it to the nearest office of the AMC. Advance request should be given, and you should also specify the period for which the investment would be paused.
How to stop SIP?
Stopping SIP means that you do not wish to continue investing in a mutual fund scheme any longer. To do so, you can make a written request to the AMC stating that you wish to stop your SIP investments. There are stop SIP forms too which should be filled and submitted to the AMC.
These are the ways in which you can make modifications to your SIP investments. Always try to give advance notice to the AMC for any modification that you wish to do and also check the terms and conditions on such modifications. So, change your SIP instructions any time you want through these simple steps.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.