Missed your mutual fund SIPs? Here is how to avoid cancellation of the SIP

Have you missed your mutual fund SIP? Successive misses may lead to cancellation of your SIPs. Here are some steps you can take to avoid cancellation of your SIPs.

1. Investors tend to miss a systematic investment plan (SIP) instalment when there is an insufficient balance in their bank accounts.

2. The mutual fund AMC does not levy any penalty or charges for a missed SIP instalment.


3. The bank may, however, charge a fee for failure to maintain the required balance for an auto debit mandate.

4. Three consecutive missed SIP instalments leads to SIP cancellation.

5. The cancellation or penalty can be avoided by pausing an SIP when there is insufficient balance, and resuming when ready.

Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.