How to cancel your SIP in Mutual Funds?
SIP is one of the best way for long-term investments. Generally, investors keep this in mind and mention longer years in SIP application forms of mutual funds – 5 years, 15 years, 25 years, 50 years or perpetual (without ending date).
But it happens sometimes that you wish to stop your SIP in mutual funds. Reason can be
a) the fund is no longer performing well
b) you want to change or close your bank a/c
c) financial problem
d) you may want to start fresh SIP on different date or with higher / lesser amount
e) you no longer trust mutual funds
f) your post dated cheques are invalid because of change in RBI or Bank rules
g) or any other….
Whatever the reason may be. Let us discuss how to close your SIP in mutual funds.
To stop SIP in mutual funds, different fund houses have different rules. Some will accept a simple application on a plain paper while some insists on proper form given by them.
You need to mention following things in application form:
- Folio No.
- Scheme Name
- Plan and Option (Growth, Bonus, Dividend etc.)
- SIP Date
- Payment way (ECS, standing instructions, Post dated cheques etc.)
- Bank Name, A/c no., branch address, IFSC code etc.
- Month from which you want to stop SIP
- Signature(s) of all account holders with name(s)
AMC's might take 30 days to process your application. So, keep your funds in bank keeping this thing in mind.
Official Application form for cancellation of SIP
Some AMC's do not accept simple application on plain paper. Instead, they want specific application form to be filled by investor.
You can get the other forms from the official website of AMCs or you can comment below if you require any specific form.
Best Regards
Prakash Nair
prakash@yourownadviser.com
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