For the last few days, there has been a volatile market environment due to the Coronavirus crisis. The result of this is that people are shutting down their investments from the stock market or are selling out. The same situation is happening for mutual fund investors as well. Where many companies are constantly cutting with salary cut, people have a shortage of cash. In such a situation, for those whose bank account deducts SIP amount every month, it has become a matter of concern. Some people do not understand whether to discontinue their existing SIP or to stop it for a few days. In such a situation, we will tell you what is the way to stop your SIP for a few days and why it is better to stop for a few days than to pause for a few days? Learn through our special report.
If you are also having cash problems due to coronavirus, most of the experts believe that you should not close them, rather go through your SIP for a few days in a pause option.
How to pause SIP?
Every mutual fund has its own methods, through which you can stop the SIP of your month for a few days.
Asset Management Company (ASSET Management) decides the timing of the option of Pause.
In order to pause SIP, an investor has to fill the SIP Pause form.
Pause form can also be filled by going to the company's service center office or downloading it online from the company's website.
Keep in mind that to fill the SIP, fill the date properly. From which date to how long you have to pause your SIP, fill that date carefully.
Complete information about your existing SIP is required in the form.
The investor is required to fill in his SIP folio number and his name and sign the pause form.
Bank mandate system also has to be given information or else your money can be cut like every month.
· Asset management company gives bank all information about not cutting SIP money during pause time
Keep in mind, if you want to pause your SIP for a few months, then you will have to submit the pause form to the Asset Management Company at least one month in advance.
You can submit the form by going to the office of the asset management company nearby. Many companies also provide this facility online.
As soon as your pause time is over, your SIP money will start deducting from the scheduled time.
Take care of some important things:
If you have changed or closed your bank between the time of pause then inform your asset management company soon.
If you do not inform the bank, your SIP will stop after the pause time as your bank account will stop being debited.
Through this folio, if the investor wants, he can start SIP again.
Not every asset management company offers the option of poses to its investors. So get information from your fund house before going to the pos option
Mutual funds give investors the option to pose only once during the entire tenure of SIP.
If someone has invested money in mutual funds through SIP through online distributor portal or investors stock exchange then they will not get the option of pause
You can pause SIP for a minimum period of three months to 6 months.
You have to tell your asset company within 10 days to a month to pause.
Nippon India Mutual Fund, ICICI Prudential Fund, Tata Mutual Fund, Aditya Birla Sun life Mutual Fund, Mirrae Asset Mutual Fund, UTI Mutual Fund, Reliance Mutual Fund and other such companies in which you can pause SIP. Also, you can send a request to pause online or through email.
Not all mutual funds have a posse option. So always check with your broker or registered agent whether you can pause your SIP or not.
So if you also have a shortage of cash and want to pause your SIP for a few days, then do so easily through the information given above. Be sure to check with your investment advisor before making any decision.
This post was published on May 6, 2020 9:36 pm
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