How to Close Mutual Fund SIP?

16 August 2024

414 6 mins read

Cancelling a mutual fund Systematic Investment Plan is a straightforward process. Know how to do it online or offline, depending on your preference.

Table of Contents

Overview

To cancel a Mutual Fund Systematic Investment Plan (SIP), you have to submit a written request to the fund house or AMC (Asset Management Company) where your SIP is registered. This request should include your folio number, SIP date, and the reason for cancellation. It’s essential to adhere to the notice period specified by the fund house, which is usually 30 days. Once the request is processed, your SIP will be cancelled, and no further deductions will be made from your bank account. Keep in mind that it’s advisable to consult with your financial advisor or the fund house’s customer service for precise instructions and to ensure a smooth cancellation process. You always have an option to temporarily stop the SIP. In this blog you can learn about how to Close Mutual Fund SIP.

How to Temporarily Stop/Pause SIP

Step 1: Go to the website or mobile app of your mutual fund house.

First, you need to go to the website or mobile app of the mutual fund house where you have invested. This is where you can manage your SIPs and other investments.

Step 2: Log in to your account.

Once you are on the website or app, log in to your account using your folio number and PAN number.

Step 3: Click on the ‘SIP’ or ‘Transactions’ tab.

Once you are logged in, look for the ‘SIP’ or ‘Transactions’ tab. This is where you can view and manage all of your SIPs.

Step 4: Select the SIP pause

Once you are on the ‘SIP’ or ‘Transactions’ tab, select the SIP that you want to pause.

Step 5: Click on the ‘SIP’ Pause button.

Once you have selected the SIP, click on the ‘SIP Pause’ button. This will open a window where you can enter the start and end dates for the pause period.

Step 6: Enter the start and end dates for the pause period.

In the window that opens, enter the start and end dates for the pause period. This is the period during which you want to stop your SIP payments.

Step 7: Confirm the pause request.

Once you have entered the start and end dates, click on the ‘Confirm’ button to confirm your pause request.

You will receive a confirmation email or SMS from the mutual fund house once your pause request has been processed.

Note : The process for each fundhouse varies from time to time. So it’s important to consult your fund manager or the investment experts if there are any issues.

How to Cancel SIP Offline?

Step 1: Get a SIP cancellation form

You can do this by visiting the mutual fund house branch office or the registrar and transfer agent (RTA) office

Step 2: Fill out the form

Request for the cancellation form and request for your folio number, bank account number, scheme name, PAN number, and the date from which you want to cancel SIP. Make sure to fill the details accurately.

Step 3: Submit the form

You can submit the form at the mutual fund house branch office or the RTA office. You can also mail or fax the form to the mutual fund house.

Step 4: Receive a confirmation

You will receive a confirmation email or SMS from the mutual fund house once your cancellation request has been processed

Step 5: Cancel the ECS mandate with your bank

If you have activated ECS for SIP payments, you must inform your bank to deactivate the ECS mandate. You can do this by visiting the bank branch office or by submitting a written request to the bank.

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How to Cancel SIP Online?

There are two ways to cancel your SIP online, one is through the KRA’s the other way is through AMC’s. There are five prominent KRAs in the country, namely CAMS KRA, Karvy KRA, NSDL KRA, NSE KRA, and CVL KRA. When it comes to cancelling your SIP (Systematic Investment Plan), the process remains quite similar across these agencies. Here, we’ll explore the procedure for cancelling SIP through one of these agencies, CAMS KRA, for your convenience.

CAMS KRA provides an online avenue for initiating SIP cancellations, making the process efficient and user-friendly. Follow these steps to cancel your SIP:

Log In: Access the CAMS KRA website at https://mycams.camsonline.com/ using your unique user ID and password
Navigate to ‘My Transactions’: Once logged in, locate the ‘My Transactions’ icon on the top menu bar
Select ‘Systematic Transactions’: In the text menu bar, opt for ‘Systematic Transactions,’ and then choose the ‘active’ SIPs that you wish to cancel.

Note: If you don’t see a ‘Cancel’ button for your SIP, it might be due to the asset management company’s policy, which might not allow online cancellation. In such cases, it could also indicate that the SIP wasn’t initially generated through CAMS KRA. If your SIP falls under any other KRA, you will need to download the cancellation form from the respective KRA’s website and follow the offline cancellation procedure.

Step-by-Step Guide for Karvy KRA Cancellation Form

If you’re dealing with Karvy KRA for your SIP and need to obtain their cancellation form, follow these steps:

Visit the Karvy website at https://www.karvy.com
Select ‘Mutual Fund Investor Services’
In the ‘Services’ section within the Downloads area, scroll down to find the ‘SIP/STP/SWP Cancellation Request’
Alternatively, you can directly access the cancellation form from the provided link.

Effortless SIP Cancellation with Asset Management Companies (AMCs)

Step 1: Visit the mutual fund website or mobile app.

First, you need to go to the website or mobile app of the mutual fund house where you have invested. This is where you can manage your SIP Account and other investments

Step 2: Log in to your account using your folio number and PAN number

Once you are on the website or app, log in to your account using your folio number and PAN number. Your folio number is a unique number that is assigned to you when you invest in a mutual fund. You can find your folio number on your investment statement or on the mutual fund house’s website

Step 3: Go to the ‘SIP’ or ‘Transactions’ section

Once you are logged in, look for the ‘SIP’ or ‘Transactions’ section. This is where you can view and manage all of your SIPs

Step 4: Select the SIP you want to cancel

Once you are on the ‘SIP’ or ‘Transactions’ tab, select the SIP that you want to cancel

Step 6: Click on the ‘Cancel SIP’ button

Once you have selected the SIP, click on the ‘Cancel SIP’ button. This will open a window where you can confirm the SIP cancellation

Step 7: Confirm the SIP cancellation

In the window that opens, confirm the cancellation. You may also be asked to enter a reason for cancellation, but this is not mandatory. You will receive a confirmation email or SMS from the mutual fund house once your cancellation request has been processed.

Key Takeaways:

Adaptability: Life’s uncertainties warrant financial flexibility. The option to temporarily pause your SIP ensures that you can navigate unexpected situations without derailing your long-term investment strategy.

Offline Ease: For those who prefer a more traditional approach or face technical limitations, the offline SIP cancellation method provides a reliable alternative.

Digital Convenience: The online cancellation method encapsulates the modern convenience of managing your investments at your fingertips. The user-friendly interfaces of mutual fund platforms simplify the process further.

Informed Decision-Making: Regardless of the method you choose, making well-informed decisions is paramount. Understand your financial goals, investment horizon, and the implications of canceling a SIP on your overall portfolio.
Consultation: If you find yourself in doubt or seeking personalized guidance, don’t hesitate to consult financial advisors. Their expertise can provide valuable insights tailored to your unique financial situation.

As you venture forth in your financial journey, remember that the world of investments is as much about strategy as it is about adaptability. The ability to adjust your sails when the winds of change blow is what sets you on a course toward financial success. Armed with the knowledge from this guide, you are better equipped to navigate the complexities of closing a mutual fund SIP while staying aligned with your financial aspirations.

Conclusion:

Managing your mutual fund investments is an ongoing journey that demands adaptability and informed decision-making. The ability to how to close mutual fund SIP is an integral aspect of this journey, ensuring that your investments align with your evolving financial circumstances and objectives. Whether you’re opting for a temporary pause, navigating the intricacies of offline cancellation, or embracing the convenience of online cancellation, this guide equips you with the knowledge to maneuver each scenario confidently. Remember, before making any major financial decisions, it’s always wise to consult with financial advisors and consider the implications on your long-term financial goals.

FAQs

Can we close mutual fund SIP anytime?

Yes, you can close your mutual fund SIP anytime. There is no penalty for closing a SIP. However, it is advisable to review your financial situation and investment goals before closing a SIP.

Will I get my money back if I cancel my SIP?

Yes, you will get your money back if you cancel your SIP. The mutual fund house will redeem your units and the proceeds will be credited to your bank account.

Can I stop SIP and not withdraw?

Yes, you can stop your SIP and not withdraw your money. Your existing units will continue to remain invested in the mutual fund scheme and you will continue to earn returns on them.