How To Stop, Cancel, Or Pause Your MF SIP Easily? A Guide To Your Mutual Fund’s Systematic Investment Plan!

You've got to initiate the process to stop your mutual fund’s systematic investment plan 10–15 days before the date of your MF’s SIP debit ECS.

Importance of Nomination 

Do you want to stop your mutual fund’s systematic investment plan (MF SIP) once your desired financial objective is achieved? Do you want to pause or cancel your SIP due to certain unavoidable reasons? If yes, you should act immediately to avoid paying your next MF SIP instalment. This is because a mutual fund house usually takes 10–15 days to process your request to stop, pause, or cancel your MF SIP. 

The process to cancel or pause the SIP of your mutual fund scheme is simple. You can do it yourself, either online or offline. If you're uncomfortable doing it yourself, you may also seek expert advice from your financial advisor. Let's understand the procedure step by step.

How to Stop Your MF SIP Online?

If you want to stop, pause, or cancel an SIP for your MF scheme online, follow these steps:

Step #1: Visit The Website

Visit the website of the mutual-fund house (say, HDFC, Aditya Birla Sun Life, Mirae Asset, or others) from where you have bought the MF scheme.

Step #2: Account Login

  • Login to your account by either providing your folio details or login credentials.
  • You may also instruct online to pause or cancel your MF SIP by logging into your mutual fund distributor or R&T agent’s online transaction platform.

Step #3: Ongoing MF SIP Instructions

Now, you have to find your ongoing SIP instructions and click them.

Step #4: Select and Stop or Cancel the SIP of Your Mutual Fund

Once you click on the ongoing SIP instructions, you can see your ongoing SIP instruction(s) for the concerned mutual fund house. Now, choose “Cancel/Stop” to ask the concerned MF house to pause or cancel the SIP of the concerned MF scheme that you want to stop, pause, or cancel.

How to Stop Your MF SIP Offline?

To stop, pause, or cancel your mutual fund’s SIP offline, follow these steps:

Step #1: Visit The Website And Download the Form

Visit the website of the mutual fund house of your MF scheme and download the “Stop SIP” form and print it.

Step #2: Fill Up The “Stop SIP” Form

To stop the MF SIP, you have to fill up all the details, including:

  • Folio number
  • Details of your MF SIP
  • Permanent Account Number issued by the income tax department

Once you’ve filled in all the information, you've got to sign the form.

Step #3: Submit The Form

Now you have to submit the duly filled-in and signed "Stop SIP" form to:

  • Your financial advisor
  • Investor service centre
  • AMC Office

Once you submit the cancellation form, don’t forget to collect the acknowledgement counterfoil.

Also Read: Which One To Choose: Direct Or Regular Mutual Fund?

How Much Time Does it Take to Stop, Pause, or Cancel the SIP of a Mutual Fund?

The time to stop, pause, or cancel the MF SIP may vary from one mutual fund house to the other. Mutual fund houses usually take between 10 and 15 days to process the request to stop, pause, or cancel your SIP in your MF. Sometimes it may also take up to 20 days to stop, pause, or cancel your SIP from the date of your request.

If you want to avoid paying your next MF SIP instalment, submit your request at least 21–25 days before the next instalment date. If you delay submitting the request, you may have to pay the next instalment of your MF SIP.

Is it Possible to Pause, Cancel, or Stop MF SIP Instantly?

Yes, it is possible to immediately pause, cancel, or stop your mutual fund’s systematic investment plan. For instant actions, you can use Mutual Funds Utility (MFU’s) online SIP Stop and Start (SIPSaS) facility.

MFU is an MF-transaction platform backed by the mutual fund industry. You may use the online SIPSaS facility only if your MF scheme is registered with the MFU.

Why Should you Avoid Stopping or Pausing your Mutual Fund SIP?

You should avoid stopping your MF SIP to:

  • Continue investing to accumulate wealth in the long run
  • Take advantage of compounding
  • Take advantage of rupee cost averaging (which lowers your risk of investing in the equity market but still provides you with a decent return)
  • Enable financial experts to provide you with optimal returns in the medium-to-long run

Also Read: IDFC MF Rebranded To Bandhan MF

Final Words

You can always pause, stop, or cancel your MF SIP if:

  • Facing any financial hardship
  • There is a change in your investment objective
  • Financial goals are achieved
  • There is a change in the asset allocation and objectives of the concerned fund
  • Not comfortable investing in a highly volatile market condition

If you want to stop MF SIP, you can always do it by either:

  • Clicking the "Cancel/Stop" option by logging in to your account with the website of the mutual fund house or
  • Submitting your filled-up "Stop SIP" form at your nearest AMC office, investor service centre, or financial advisor.

After you submit your request for stopping or cancelling your MF SIP, it usually takes 10--20 days (depending upon the fund house) to process and stop the SIP. To avoid paying the next SIP instalment, it is wise to submit the request early.

However, you should avoid stopping, pausing, or cancelling your MF's SIP because it will adversely affect your retirement or long-term investment plan. Choose this option to stop MF SIP only in the case of emergencies.

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