Planning to stop your mutual fund SIP permanently? Here's how much it could delay your financial goal

One common mistake is pausing SIPs for a temporary period and resuming them later. A more serious mistake is permanently discontinuing SIP contributions. Here is how much stopping your SIPs permanently can delay your financial goals, as reported by ET Wealth.

Although the money already accumulated in the portfolio continues to earn returns, the absence of fresh contributions dramatically slows wealth creation. The impact is particularly severe when SIPs are stopped early.

An investor who aims to build a corpus of Rs 1 crore through a monthly SIP of Rs 20,000 and expects a return of 10% annually. If the SIP continues uninterrupted, the target corpus can be accumulated in approximately 198 months, or about 16 years and 6 months.

If an investor discontinues SIPs after just three years, the Rs 1 crore target gets pushed back by nearly 11 years and 6 months.

If an investor discontinues SIPs after just five years, the Rs 1 crore target gets pushed back by nearly 7 years and 3 months.

If an investor discontinues SIPs after 10 years, the Rs 1 crore target gets pushed back by nearly 2 years and 6 months.

When SIPs stop early, investors lose not only future accumulations but also the compounding benefits those investments would have generated over the years.