Systematic Investment Plan (SIP) in Mutual Fund is one of the best way to accumulate wealth and works especially well for long term goals. Keeping this in mind investors do long term SIPs like 5 years, 10 years or even perpetual. Perpetual SIPs are those which have no ending date and so the SIP would continue forever.
But you might want to stop your SIP in Mutual fund due to the following reason:
- The Mutual Fund Scheme is not performing well
- You want to change or close your bank account
- There might be some temporary financial problems
- You might want to redo asset allocation
and so on…
Whatever your reason to close your SIP, lets see the process to do it.
Process to Stop SIP in Mutual Fund:
Some mutual fund houses like Goldman Sachs Mutual Fund, Axis Mutual Fund, Reliance Mutual Fund, ICICI Prudential Mutual Fund have made the process easy and have pre-formatted application form on their websites. You just need to download the form, fill the relevant details and submit to the the mutual fund office or respective fund registrar (CAMS, Karvy) office.
For other fund houses, you need to submit an application mentioning the relevant details like:
- Folio No. along with Mutual Fund Scheme Name
- Plan and Option (Growth, Bonus, Dividend etc.)
- SIP Date
- Payment way (ECS, standing instructions, Post dated cheques etc.)
- Bank Name, A/c no., branch address, IFSC code etc.
- Month from which you want to stop SIP
- Signature(s) of all account holders with name(s)
I have attached a sample application form to stop your SIP. You can download the same in MS Word Format and change the underlined & italicized words to your relevant details.
AMCs might take 30 days to process the SIP stop request. So keep this in mind while requesting for Stopping your SIP.