SIP Pause-Useful facility for Mutual Fund Investors

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.

 

15 Comments

  1. Hey Basavraj,
    I invested in birla sl MNC mf via sip last month.now i doubt my decision,
    Shall i stop it or swtich? If switch den which fund shall i switch over to?? (having small mid cap amd elss in mind)

    Reply
  2. I’m a 33 year old married girl with a 1.5 yrs old baby boy. We have own house and I also will have a share in my paternal house. My family and me as an individual don’t have any loans. My salary is Rs. 20000/- and my monthly expense is Rs. 13000/- including LIC and mediclaim payments. The amount I keep as cash in hand is Rs. 2000/- and the balance Rs. 5000/- I want to invest in mutual funds through SIP. I’m a medium risk taker, and on increment of salary I’ll invest more in funds.

    I already have two LIC – for first the premium is Rs. 12000 p.a. (endowment plan), and for the second the premium is Rs. 5300 qtrly (pension plan). I already have family mediclaim including my both parents and baby.
    I have three goals:
    • To have a small car: within next 5 years, within 3.5 lacs
    • Children education: Rs. 20 Lacs within next 17 years
    • Safe retirement from work: At the age of 50 and corpus 30 lacs

    Please suggest some good funds to achieve my goals. With such a small salary and at 33 yrs, I’m still in a doubt if I’m daydreaming with such goals.

    Thanks and best regards,
    Deeya

    Reply
    • Hey Deeya,
      As u said u r a medium risk taker so invest in any good largecap or diversified fund
      Where risk is minimal though small and midcap have bttr growth potential (along with small risk).
      In my view as u r young invest 2000 in small mid cap like dsp br microcap or frnklin smaller cos and rest in diversified or large cap.

      Reply
        • Hey Basavraj,
          I thnk there is no need of any debt investment for her and in equities mutual fund is da bst way (to minimise risk and earn gain)
          solution.
          Whts ur POV?

          Reply
  3. Dear sir,
    Pls tell me how can I start sip on nifty bees every month.

    Reply
  4. Sir,
    SIP is a great way to invest. But if a disciplined investor who rather than going to SIP route invest on his own in MF schemes monthly or weekly whenever a good opportunity arise like when markets are down. So would That be more beneficial for him or not considering that he can do it consistently.
    Thanks.

    Reply
    • Anil-How can you judge that “MARKET IS DOWN”? Is there any specific tool? Today if NSE dropped to around 500 points and you invest next day. Later on after a day or two, it falls again then what will be the logic? I don’t think it is such a great differentiator.

      Reply
  5. DO all Mutual Fund Houses give this facility ???

    Reply
    • Kranti-No only few provide this facility.

      Reply
      • thanx basavaraj,

        Reply
        • Kranti-Pleasure 🙂

          Reply
          • how can we know thet which mutual funds are providing PAUSE facility

            Reply
            • mruket-This information will be available in offer document itself.

              Reply

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