| SIP Cancellation |
| Say you take out a SIP for 36 months,
but want to stop it in only 3 months– can you
do that? Will any penalty be imposed on you? |
| Yes, you can cancel your SIP midway,
and no there won't be any penalty imposed on you. |
| The way in which you take out the
SIP and the fund house will determine how long it
takes for the cancellation to take effect. |
| If you have sent post dated checks
to the mutual fund, you will need to fill up a SIP
cancellation form (like this one), and send it to
them to return your remaining checks. |
| They might take anywhere from 4 weeks
to cancel your systematic investment plan, and return
your checks to you. |
| If you have gotten into an SIP online
with someone like ICICI Direct, you can log in to
your account, and cancel the request online. I imagine
that this is quicker, but I really don't know for
sure. |
| Can I continue a SIP after it ends? |
| If I take out a SIP for 36 months,
and at the end of that time period want to continue
for 3 more years will I have to start a new SIP
or can I continue a new one? |
| If you have started this by issuing
post dated checks then you can issue more checks
and get the thing going for you again. If you have
used an online platform then this post explains
how to set one up. |
| Again, I am not sure if you can just
continue the existing one or not, but the effect
is much the same. The commenter referred to losing
the benefits of compounding but I am not sure what
he was referring to. You won't lose anything if
you start a new one, it will work just like the
one that you got out of. |
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