How to Pause a Mutual Fund SIP ?

Before starting with the topic let's first give you a brief overview of SIP. A SIP stands for 'Systematic Investment Plan" wherein an investor periodically makes a payment of a specified amount that gets invested in Equity, Debt or/and Gold. Indian Mutual Fund got introduced with the concept of SIP by Franklin Templeton in 1993.

An Investor has an option to put a SIP to pause subject to conditions laid down by AMC (UTI Asset Management Co. Ltd, ICICI Prudential Asset Management Co. Ltd. etc ) with which the SIP is running. Every AMC has laid down its own guidelines with respect to Pause Facility.


ONLINE FACILITY:

An Investor can log in to the AMCs Official Website and use the Pause Option available against each of the running SIPs. This is to noted that certain limit w.r.t. Frequency of SIP, No. of SIPs (Minimum and Maximum) and Total Pause option allowed needs to be considered first.

OFFLINE FACILITY:

For each of the AMC, you can avail the "PAUSE FORM" available on their Website. Also this can be obtained from the AMC Office. The Form will somewhat look like the one below:





It is always better to Pause an SIP rather cancelling the same because Long Term Investment will help in Averaging the Purchase Price and also it helps in mitigating market risk and volatility to a great extent.

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