What happens if you miss a mutual fund SIP instalment? (2024)

FAQs

What happens if you miss a mutual fund SIP instalment? ›

Mutual fund houses usually do not levy any penalty if you miss your SIP installment for up to three months. Further, your SIP will continue as it is. However, if you default on your monthly SIP installment by not maintaining sufficient balance in your bank account, the bank may levy a fee or penalty.

Missing an SIP installment usually happens due to insufficient balance in your bank account. There are no severe consequences to this and the AMC or broker does not charge you for the same. However, your bank may charge you for not maintaining the required balance and missing the auto debit payment through ECS.

Zerodha SIP and lumpsum orders are deleted automatically on T+4 calendar day if the payment is not completed. AMC SIP and NEFT orders are deleted automatically on T+5 business day if the payment is not completed.

No, a missed SIP payment is different from missing a loan EMI or credit card payment. SIPs are about investing your money, not borrowing. So, a missed SIP doesn't get reported to credit bureaus and won't impact your credit score.

For how long can I skip my SIP installment? Currently, you can skip only 1 installment at a time. You can, however, place another skip request for the same SIP after the first installment is skipped (i.e. after the date of your skipped installment).

After the date shown on the pending SIP is past, the installment is automatically considered as failed.

If an EMI is not paid on time, it can result in late fees, a negative impact on your credit score, and potential penalties from the lender. Repeated missed payments may lead to more severe consequences, such as legal action or asset repossession, depending on the loan agreement.

If you stop paying SIP, no new mutual fund units are allotted to you. However, the existing mutual fund units remain invested and perform as per the performance of the securities included in the mutual fund scheme.

Select the mutual fund scheme. Click on Pause to pause a SIP or Resume to resume the SIP. Click on Yes.

Will I get my money back if I cancel my SIP? No, cancelling your SIP doesn't result in immediate return of invested money; it stops future investments. Can I stop SIP without redeeming? Yes, you can stop SIP without redeeming, halting future investments while leaving existing investments untouched.

Can you invest as lump sum if SIP is missed? ›

If you miss making a payment on the SIP date, you can still invest as a lump sum and continue your SIP from the next instalment onwards. Please note that after 3 consecutively failed SIP instalments, the SIP is automatically cancelled.

Pausing your SIP is possible if the mutual fund company allows such a feature on its fund. Different companies have different procedures for it. You can also pause your SIPs on broker platforms if they allow you to do so. Most mutual fund houses have rules wherein you can pause your SIP for a maximum of 3 to 6 months.

Mutual fund houses usually do not levy any penalty if you miss your SIP installment for up to three months. Further, your SIP will continue as it is. However, if you default on your monthly SIP installment by not maintaining sufficient balance in your bank account, the bank may levy a fee or penalty.

Yes, you can cancel your SIP at any time.

Your current investments will remain in the mutual fund. One of the key benefits of a Mutual Fund SIP is its flexibility. You can cancel your SIP whenever you need to, without any penalties from the mutual fund company.

Missed payments can show on your credit file and affect your credit score for up to 6 years. If you apply for any type of credit during that time, lenders will be able to see this when they do a credit check, which may affect your ability to get credit in the future.