Query of Blog Reader: Cancellation of SIP in midway
I had enrolled for SIP in mutual fund scheme for 36 months. I have completed only 10 months. At this point is it possible to cancel the SIP?
Do I lose any money because of this?
How to cancel my ongoing sip?
Whether i have to pay any charges or penalty for discontinuing the SIP in midway??
I have online access to my mutual fund scheme, whether i can apply online to cancel my SIP, as i am not finding any option online?? (my current sip is created off-line means by submitting sip auto debit form)
I need your help in drafting letter for cancellation of sip if online option is not available for termination of my sip.
Please help me as how to proceed?
Yes, you can cancel your ongoing sip after 10 months and before 36 months as SIP is a voluntary investment, the AMC cannot levy any charges or penalty for discontinuing the SIP midway.
Important point here is that discontinuation request should be given at least 30 days prior to the next due date of SIP. (some mutual fund houses take 45 days prior notice, as period differ from AMC to AMC)
No, you have to submit written request in physical form and submit to mutual fund office or cams or karvy.As you mentioned above, your current sip is done by auto debit (offline) mode, then in such case you need to submit written request or sip cancellation form in physical mode.
If the SIP was started through an online platform, the cancellation can also be done through the same platform.
SIP Cancellation forms are available with AMCs or registrar and transfer agents.
You need to fill following details in sip cancellation form
1. Folio number
2. Scheme name and Plan
3. Sip amount and sip date
4. Bank account details