It is common whenever you start to invest in Mutual Fund Schemes you will thought for a while “What will happen if I am unable to invest for few months during SIP tenure?”.
Till now only one solution for this problem was to stop the SIP and re-start it once again. During both actions you need to fill the forms and send it to Mutual Fund Companies. That too it will take activated after 30 days gap. For example, suppose your SIP date is 5th of every month and you want to stop August month SIP means you need to give application in advance before 5th of July as it will take 30 days prior notice to activate the instruction. Same thing will happen during re-activating the existing SIP means 30 days prior instruction to activate it.
To avoid such process by one time instruction, ICICI Mutual Fund came up idea of pausing the SIP for a while. Which is called “SIP Pause”. Let us look at it’s features.
1) SIP Pause facility means investor can pause their existing SIP for a period. This period is minimum for one month to maximum 3 months.
2) SIP will not be cancelled but will be paused for specific period as opted by investor.
3) SIP will start automatically once pause period over. So no need of physical instruction to mutual fund companies.
4) This facility can be availed only once during the tenure of SIP.
5) To activate the SIP pause facility, you need to download the form and submit instruction to fund house. This instruction facility will not be available online.
6) You can avail this facility for all schemes of ICICI Mutual Fund, except Exchange Folios (folios created by transactions received through stock exchange platform for mutual fund transactions) and for Channel Folios (folios created by transactions received through online mutual fund transaction platform by banks/distributors).
7) This facility is only available for monthly SIPs. So if you have SIP on quarterly then you can’t avail this facility.
This is the good facility as it will avoid re-starting instruction of SIP. Useful if other fund companies allow the same facility.