Systematic Investment Plan (SIP) has become a popular means of investing in mutual funds. This gives investors the opportunity to make regular investments in a disciplined manner and build a larger corpus over the long term. However, sometimes situations arise when investors need to stop their SIP.
Usually, the decision to stop SIP is taken due to reasons like financial problems, fear of market decline, or poor performance of the fund. Moreover, even when the investment target is achieved, investors decide to stop SIP. If you are also thinking of closing or modifying SIP, then this guide is for you.
How to close SIP: Online process
You can cancel, modify or pause your SIP online. Zerodha, Groww, and other platforms have made this process much easier.
Initial Steps to Cancel SIP Online
- Log in to your investment platform:
- Go to the website or mobile app from where you initiated the SIP.
- It can be the official website of AMC (Asset Management Company), Zerodha Coin, Groww, or your bank’s investment portal.
- Use your registered credentials to log in securely.
- Choose the right fund and option:
- After logging in, go to the mutual fund section and view your existing SIP.
- Here you can find the option to modify, pause, or cancel your SIP.
How to cancel, modify, or pause SIP on Zerodha Coin app
Modify SIP
- Open Zerodha Coin app.
- Select your SIP.
- Tap on Modify option.
- Make necessary changes and tap on Modify SIP.
Pause SIP
- Select Funds in the Coin app.
- Click on the Menu button (three dots).
- Tap on the Pause option.
- Click on Yes to confirm.
Cancel SIP (Cancel/Delete)
- Open the Coin app and select Funds.
- Click on the Menu button (three dots).
- Click on Delete option.
- Tap Yes to complete the cancellation process.
How to cancel SIP on Groww app
- Log in to the Groww app.
- Go to the Mutual Fund section on the home screen.
- Select the SIP tab.
- Select the SIP you want to cancel.
- Click on Cancel SIP in the top right corner of the screen.
- Select the reason for cancellation and click on Cancel SIP again to confirm.
Keep these things in mind while canceling SIP
- Keep in mind the timing of the next installment:
- If the next installment is within the next 3 days, the SIP cannot be cancelled.
- Canceling SIP will stop future installments, but the amount already invested will remain intact.
- Confirm notification:
- Once the process is complete, you will receive a cancellation message via email or SMS.
- Already scheduled or processed transactions can continue.
- Consider future plans:
- The decision to cancel SIP can affect your long term investment strategy.
Is it right to close SIP? Consult an investment advisor
Before canceling the SIP, ensure that your decision is not the result of any immediate emotional or financial pressure.
- Discuss with your investment advisor.
- Understand how stopping SIP will impact your long-term plans.
