![]() ![]() While stopping an SIP, an investor should keep in mind that it would take 30-45 days for the SIP to stop. ![]() If an investor is required to stop SIP due to any reason, the amount already invested should not be redeemed if it is not required, as it keeps growing with time. Since SIP is a disciplined investment tool, it should be stopped when there is any liquidity crunch or financial emergency to be met. The folio is active and an amount equivalent up to value of investments can be redeemed by the investor anytime. Hence, value of the investments also keeps growing. This means that the units remain same, but NAV of the fund keeps performing. The existing 6350.653 Units multiplied by NAV as on the date 49.55 results into this value of 3,14,674. The value of investment as on 18th April 2022 is Rs. The 6350.643 units allotted against investments till July 2017 remained same, as on the statement date 18th April 2022. No charges/ penalty has been charged in the statement. That means it took 40 days for the SIP to get stopped and the SIP instalment, which was due on 25th July 2017, got duly deducted. The investor stopped SIP on 14th July 2017, which got cancelled w.e.f. 7000/ month through SIP on 25th of every month. In this way, he invested total Rs.1,75,000 in the scheme till July 2017, against which in total 6350.643 units were allotted. 7000 per month in ICICI Balanced Advantage fund in July, 2015 and stopped it in July, 2017. This can be understood with the following real example.Īn Investor started an SIP of Rs. When an SIP is stopped, the units already allotted remains invested and their value keeps performing according to the securities in the scheme. When an SIP amount gets invested in a scheme, units are allotted to the investor. ![]() What happens with the already invested amount after stopping SIP?.In such schemes, the amount equivalent to value of free units (Units which are out of lock-in period) can be redeemed by the investor when needed. There are few schemes which have lock-in periods for investments like Equity Linked Saving Schemes(ELSS). In case any investor wishes to redeem the invested amount also, a separate request has to be submitted with the fund house. The amount already invested remains in the scheme and keeps performing. No, SIP stop just cancels the future auto debit from the bank account. Does SIP stop automatically redeem the invested amount also?.It is completely a free of cost facility. No, There are no charges/penalty for stopping an SIP in a scheme. Does SIP Stop creates any charges or penalty on the investor?.Yes, Once an SIP is stopped, an investor can anytime restart the SIP of same amount/ revised amount in the same scheme. Can a stopped SIP be restarted in future?.SIP Stop cancels this auto deduction, hence future purchases in the scheme get stopped. When an SIP is registered, the SIP amount gets automatically deducted from the bank account of the investor on a monthly/ weekly/ yearly basis depending upon the frequency of the SIP. The below points address various such queries. The amount already invested remains in the fund and keeps growing.Īt times, the investors have the confusion about what happens to the existing fund after the SIP stops, does it make any further gains etc. Once the SIP stops, the future purchases in the scheme get stopped and no auto debit happens from the investor’s bank account. It generally takes 30-45 days to stop an SIP from the date of request raised by the investor. The reasons may be - disturbance in regular income, increase in expenses, emergency needs or any other.Īs the need of stopping an SIP arises, all mutual fund schemes allow the investors to stop the SIP anytime without any penalty or charges. However, there are various situations that may occur due to which an investor has to stop the ongoing SIP investment. The amount of SIP gets automatically deducted from the bank account of the investor for the period selected by him. Through affordable amounts invested over a period, and with capital appreciation of the investment, an investor is able to create a large fund for his future family needs. SIP (Systematic Investment Plan) is a method of investing a fixed sum regularly in a mutual fund scheme. Investments in Mutual funds can be done in two ways – Lumpsum and SIP. ![]()
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