What happens when SIP period ends?

Your first SIP will end next month (after the 24th instalment), and the money in that investment will stay there. It will not get credited to your bank account until you ask for a redemption. Your second SIP will continue, it appears, for 960 more instalments (or 80 years).

What happens if you dont pay monthly SIP?

While mutual fund companies don’t penalize for non-payment of a few SIP installments, your SIP will automatically be cancelled if you fail to make the payments for three consecutive months. Also, your bank will penalize you for dishonoring the auto-debit payments.

Will I get my money back in SIP?

If you have purchased your SIP with your Demat or trading account, you will receive an e-pay out to the bank account registered with that account. You will need to submit a redemption request in order to do the same. If you hired an agent to invest in SIPs, contact the same agent to redeem it.

Is it compulsory to invest in SIP every month?

You do not need to worry about timing the market when investing via SIP. In SIP, you invest a small amount of money every month. In some months, the price will be high while in some months, the price will be low. If you consider the long term, the price you pay will be an average of high and low.

Can SIP be redeemed anytime?

How can I withdraw money from my systematic investment plan as I am facing some cash crunch now? You can withdraw your investments periodically unless they are under the lock-in period. You can withdraw via SWP (systematic withdrawal plan) route by redeeming a fixed amount at a given frequency.

What happens if you miss a mutual fund SIP?

Missing a mutual fund SIP usually happens when an investor is not able to maintain the minimum required amount in his/her bank account. Most investors think that missing an SIP can lead to serious consequences like penalty, cancellation of future SIPs etc.

What happens to my SIP instalments if I withdraw money?

Your SIP instalments will continue to purchase fresh units, even as you withdraw from the fund. Hence, if you do not want to continue with the SIP, then you would need to separately request for its cancellation. * Do I have to give KYC related documents every year to the mutual fund company?

What is the exit load of 1\% in SIP?

If one is investing an amount of Rs 1,000 through monthly SIP in a fund that charges an exit load of 1\% for holding period less than 1 year and now wants to withdraw towards end of 2 years, then investments made in the first 12 months will not attract exit load. Investments made after 12 months will attract the 1\% exit load.

What should I do if I fall behind on my SIP?

So, if you are falling behind on your SIP, cancel (no charges of cancellation) the SIP till you don’t have enough money for time being start again when you money. Another way in this situation is to cancel the ECS/NACH or Biller. So that, even if mutual fund raises a raise a request, your bank with reject it.