I wish to redeem all my SIP investments that I started two years ago. Can I do so when I had signed for a 5-year SIP?
Raman Sharma, Delhi
Just because you had agreed to make SIP contributions for five years does not mean that you have to pay for all the 60 installments. You have the choice to stop the SIP when you wish. You have no obligation to the AMC to continue the SIP indefinitely. So, if you decide to temporarily suspend your SIP investments or stop future SIPs, it does not attract any penalties imposed on you. However, your bank may charge a penalty if a debit request from the AMC cannot be honoured due to lack of funds in your account. These days AMCs offer you a SIP pause option, which you can exercise to temporarily stop the SIP. In your case you wish to stop future SIPs, which you can do without attracting any penalties.
