Mutual Fund SIP (systematic investment plan) is one of the most common strategies adopted by many investors to increase his or her wealth. Mutual Fund SIP is an investment option in which you can deposit money in any mutual fund scheme of your choice regularly.
After a specified period or depending on your need, you can exit the fund along with the returns. Unlike lump-sum investment, you do not need to spend a large investment budget across mutual fund schemes as your investment will grow over time with SIP.
But what if you want to cancel your systematic investment for some reason? How do you do that?
How to Temporarily Cancel/Pause SIP?
Pausing your SIP is possible if the mutual fund company allows such a feature on its fund. Different companies have different procedures for it.
You can also pause your SIPs on broker platforms if they allow you to do so. Most mutual fund houses have rules wherein you can pause your SIP for a maximum of 3 to 6 months.
How to Cancel SIP Offline?
You may cancel your mutual fund SIPs offline by notifying your bank and the respective AMCs. You can also have your mutual fund agent do it for you.
The procedures to cancel a Mutual Fund SIP offline are as follows:
- Request a SIP cancellation form from your asset management firm or through online Mutual Fund Registrar and Transfer websites such as CAMS and KFin Technologies Limited.
- Fill in the required information, such as your bank account number, scheme name, PAN number, folio number, SIP amount, and the date from which you wish to terminate the plan.
- Submit the paperwork at any branch of the AMC.
It generally takes around 14-21 days to complete the cancellation procedure, but fund houses may complete the same in a shorter time frame. So make sure you don’t have any SIP deposit deadlines within that time frame.
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How to Cancel SIP Online?
You can cancel your SIP either with your MF house or directly with the KRA, such as CAMs, KFin Technologies Limited, etc.
There are five different KRAs in India such as CAMS KRA, KFin Technologies Limited KRA, NSDL KRA, NSE KRA, and CVL KRA. The process for SIP cancellation would be similar in all. So, let us understand one of them for your convenience.
For CAMS KRA, you need to initiate a SIP cancellation through their website:
- Log in to https://mycams.camsonline.com/ with your user ID and password
- In the top menu bar, select the ‘My Transactions’ icon
- In the text menu bar, choose ‘Systematic Transactions’ and then select the “active” ones
- The continuing systematic transactions will be visible to you. Each SIP row will have a Cancel link.
- Click the Cancel button and verify the cancellation.
Note: If the cancel button is not available, it means that the asset management company is not allowing online cancellation or the SIP was not generated through CAMs. As for other KRAs, you have to download the cancellation form from their website and follow the offline procedure to cancel SIP.
The following is the step-by-step guide to get KFin Technologies Limited’s Cancellation Form.
Visit https://mfs.kfintech.com/investor/.
On this page, users need to scroll to theInvestor Statement and Reportssection. From there, you can find the SIP Cancellationtile. Clicking on it will open a new window. In theServicessection, choose the SIP/STP/SWP cancellation request from the menu.
You can download the form here.
To begin, visit the website of the asset management company for which the SIP is still active. You will need the folio number, bank account number connected with the folio, and PAN as login credentials for the website. You can also cancel it through mobile applications of the respective AMCs.
Next, you need to choose the ongoing SIP that you wish to terminate and click ‘Cancel SIP.’ As is customary, the cancellation procedure will take approximately 21 days.
Key Takeaways
To cancel SIPs offline, the investor must get a cancellation form and fill it up before submitting it to an AMC branch office or an RTA office. Investors can also terminate plans online through the AMC or KRA websites. Online cancellation is significantly more convenient.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
FAQs
If you invested in a mutual fund and activated SIP payments via an online distributor platform, you can use the platform to cancel the SIP. You can log in to the platform and click on the 'Cancel SIP' option for the fund you want to stop investing in from the upcoming methods.
Can I cancel SIP immediately? ›
SIP can't be canceled if you have an upcoming installment due in the next 3 working days. If this is the case, you may cancel after paying this installment. Any amount already invested in the fund will continue to remain invested. Canceling the SIP will only stop future installments.
Can I stop SBI SIP online? ›
Mutual funds and SIP investments have gained popularity due to their attractive returns and liquidity. If you have invested in an SBI mutual fund and wish to liquidate your SIP, you can cancel it easily using two methods: online and offline.
How to withdraw SIP online? ›
Log in to your trading account, locate the section displaying your mutual fund holdings, and identify the specific SIP investment you want to withdraw, adhering to the principles of "how to withdraw SIP amount." Follow the platform's instructions, specifying the withdrawal amount and providing any further details as ...
Can I cancel mutual fund at any time? ›
You generally can withdraw money from a mutual fund at any time without penalty. 7 However, if the mutual fund is held in a tax-advantaged account like an IRA, you may face early withdrawal penalties, depending on the type of account and your age at the time.
How to cancel SIP online? ›
● Visit the AMC Website
Once you enter the portal, select the SIP you want to cancel or pause. Click on the 'Cancel SIP' option. The AMC will take up to 21 days to process your request and cancel the SIP payments. Once the request is processed, the automatic payments will stop.
Is it better to pause SIP or cancel SIP? ›
SIP pause allows you to suspend your contributions for various reasons temporarily. Unlike cancelling a SIP, it allows investment growth during the pause period if the Mutual Fund performs well. It provides flexibility for reassessing strategies or managing financial constraints while maintaining investment continuity.
How do I stop SIP without agent? ›
You may cancel your mutual fund SIPs offline by notifying your bank and the respective AMCs. You can also have your mutual fund agent do it for you. Request a SIP cancellation form from your asset management firm or through online Mutual Fund Registrar and Transfer websites such as CAMS and KFin Technologies Limited.
Can I withdraw SIP anytime? ›
Can I withdraw my SIP anytime? Yes, you can withdraw money from your SIP anytime. However, there are a few exceptions. For instance, ELSS has a lock-in period of three years, while a children's savings fund exhibits a lock-in period of 5 years.
Does SIP stop automatically? ›
After a period of inactivity: Most Asset Management Companies (AMCs) will stop your SIP after there are no successful installments for a period of 2-3 months. This timeframe can vary depending on the AMC.
SIP Withdrawal Charges with Example
For instance, if you withdraw your SIP investment within a year from the date of investment, the mutual fund may charge an exit load ranging from 0.5% to 2% of the redemption amount. In the case of investment through SIP, every instalment is treated as a fresh purchase.
What is the penalty for SIP? ›
Banks typically charge between Rs 100 and Rs 750 as a penalty each time the SIP autopay mandate fails due to insufficient bank balance, says Nishant Srivastava, CEO, Torus Private Wealth.
How do I exit from a mutual fund? ›
Here are some common ways to exit a mutual fund investment:
- Redeem Mutual Fund: As discussed earlier, redeeming mutual funds is a common way to exit a mutual fund investment. ...
- Switch Mutual Funds: Investors can also choose to switch their mutual funds from one scheme to another within the same fund house.
Will I get my money back if I cancel my SIP? No, cancelling your SIP doesn't result in immediate return of invested money; it stops future investments. Can I stop SIP without redeeming? Yes, you can stop SIP without redeeming, halting future investments while leaving existing investments untouched.
Can I close mutual fund online? ›
Through the AMC website
Begin by visiting the mutual fund's official website, where your active SIP is. Log in using your designated credentials. Identify the ongoing SIP you wish to cancel and select the "Cancel SIP" option. The SIP will be discontinued within 21 working days.
Can I exit my SIP anytime? ›
Can I cancel my SIP anytime? Yes, you can cancel your SIP at any time without specific restrictions. What if I cancel my SIP before maturity? Canceling your SIP before maturity simply means that you are discontinuing future investments.
What is the right time to stop SIP? ›
Interrupting or ceasing investments during market peaks or due to apprehensions about a correction is counterproductive to reaching your financial objectives. Bhatt adds, “Instead of stopping completely, you could choose to reduce your SIP or lump-sum amount until market conditions seem less frothy.
Can you cancel SIP Club at any time? ›
7.2 Changes or Cancellation.To change or cancel your Subscription at any time, visit the Subscription section at www.panerabread.com/UnlimitedSipClub or on the App.
Can I cancel SIP before lock in period? ›
You can usually cancel an SIP at any time, regardless of the underlying investment. However, the ELSS fund units already purchased through the SIP will still be locked in for 3 years from their purchase date.
