How To Pay Missed Sip Installment

Systematic Investment Plan (SIP) is a regular and disciplined way of investing money in mutual funds. SIP allows y'all to invest a certain pre-adamant corporeality at a regular interval (weekly, monthly, quarterly, etc). SIP helps the investor inculcate the habit of saving and edifice wealth for the future.

Read More – How to Kickoff Systematic Investment Plan (Sip) In Mutual Funds

In this article, I will deal with questions relating to what will happen if you miss your common fund SIP installment. Whether your SIP investment still remains active? Do you need to pay double in next calendar month?

Consider a state of affairs ; you have a SIP installment due for 21^st of every month. Lets say, in the month of August, you incurred some unforeseen expenses, and in all you forgot to maintain the required remainder for your mutual fund SIP, which was to hit your business relationship on 21^st of the calendar month.

Due to shortage of fund available in your bank account, your SIP installment will non get deducted in that month. Many investors call back that if they miss an SIP, then their business relationship volition become de-activated and the fearfulness of missing out on the installment to salve for future goals grips them.

Well, you demand not worry equally yourSIP would remain active even if you missed 1 or ii installments due to insufficient corporeality of balance in your bank account.

When you lot miss an SIP due to insufficient funds, all that happens is that you lot miss your SIP installment for that month. The fund house wouldn't penalize you lot for missing the installment neither your SIP becomes inactive. Just your depository financial institution may penalize you lot for non maintaining sufficient funds for car-debit mandate through Electronic Clearing Service (ECS). Banks take their own set up of charges for ECS rejection, which range from Rs. 150 to Rs 750.

Important – In example 3 consecutive SIP transactions fail, then information technology would exist considered that you lot aren't willing to invest further and the SIP would exist liable for cancellation.

How to Avoid Banking concern Charges When You lot Miss Your Mutual Fund SIP installment?

If you are facing some financial crisis and are aware that y'all won't be able to service your SIP installments for adjacent three months then you tin opt forPause SIP Facility. Nether which, investor can take an option to discontinue his SIP temporarily for specific number of installments (minimum i installment and maximum 6 installments). SIP would restart upon completion of the period specified by the investor. Yous must speak to your fiscal counselor to pause / restart your SIP.

Points to Note –

Investors tin can opt for Pause facility merely twice during the tenure of a particular SIP;
Pause asking should be submitted at least 30 days prior to the next SIP installment date;
Not all AMCs offer the 'interruption' facility. It is best to bank check whether the option is available when registering the SIP;
The facility is non available to investors who have invested through the stock exchange channel or through an online distributor portal.

When y'all miss your SIP installment, you fail to accumulate the desired corporeality for your futurity goals. To avert getting your SIPs rejected due to bereft funds, register your active phone number and email and you would receive SMS from your fund business firm couple of days prior to the SIP engagement. The message volition wait something like this:

There are also facilities available wherein yous fifty-fifty get an update once the SIP has hit to know whether the transaction has been successful. You will receive notification on your mobile number.

Tip: Updating your number and email address with your registered depository financial institution likewise helps you check the success of the SIP transaction. Selecting an SIP date closer to salary credit dates helps you lot minimize the adventure of forgetting about the SIP installment.