SMS EDU to 561617 SMS EDU to 561617 
Why stop, when you can just pause and take a breather?
Just like everything else in life, a pause works well for your SIP too. Owing to job-losses, pay-cuts, a dip in the markets or shift in financial goals, many investors
consider stopping their sips every year. While stopping a SIP is permanent, pausing a SIP is a temporary measure and more favourable.
Below are the disadvantages of stopping a SIP:
1. You may not be able to reach your financial goals unless you start afresh with a new investment
2. The benefit of compounding maximizeswhen you invest
regularly and stay invested, which shall stop since you are stopping the SIP
3. Stopping of your sips nullifies the advantage of rupee cost averaging that your investment was garnering
4. Once you stop, there is no
other option but to restart it from scratch
Yes, many mutualfund houses including Nippon India Mutual Fund, have the facility of SIP pause. What it effectively means is that you can pause investing through SIPs in your mutual fund for a period of time,generally ranging from 1 month to 6 months
at one go. After the pause period, your SIP restarts.
When you miss a SIP ECS mandate, you are levied a charge/ fine. This can become a double burden on you because firstly you have missed your
SIP because of lack of funds and then you are charged with an additional fine too. However, the sip pause facility eliminates this scenario if availed. Once you pause SIP, the fund houses send an instruction to the bank asking
them to pause the mandate for the time period chosen by you.
You must inform the fund housesin advance before your next sip date. This is because the bank has been instructed on the ECS mandate by the mutual fund houses, and it may take them time to change the mandate to pause.
Let us assume that you have put in a request to step-up your SIP, say, 3 months from now & you decide to pause the SIP today for 3 months. When your SIP restarts after 3 months, the SIP amount will be the stepped-up one. That should not come as a surprise to you.
SIP pause is allowed only for a certain time period, and this duration can differ amongst fund houses. It is advisable to check the duration and procedure with your fund house before deciding to pause SIP.
The SIP pause facility can be generally availed for 1 to 2 times in the duration of the SIP mandate. This may vary as per the fund house.
Investors often wonder about how to pause mutual fund SIP online, and below are the steps to be followed to avail the SIP pause facility-
Login with your login ID and password on your fund house's website.
Go to the list of all the active SIPs you have in your portfolio and select the one you want to pause.
Select the option to pause SIP, and fill up the SIP pause form online. You must specify the duration for which you want to pause the SIP.
Once your SIP pause mandate expires, the SIP ECS mandate will automatically resume, and you shall see money getting deducted from your bank account.
Having said the above, it is advisable to get in touch with your financial
advisor before making a SIP Pause decision.
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