My savings bank account balance is low and the next two SIPs from the account will not be debited. Is there any charge applicable for stopping or missing out on SIPs?
Karthik Raman, Mysore
When you opt for an SIP, you opt to invest regularly for a predefined number of months into the future. At the same time, you have no compulsion in continuing to do so, with the option to stop or even temporarily halt the SIPs. There are no penalties or charges in stopping or pausing SIPs by the AMC. However, as you have left standing instructions with your bank to debit your account, they would charge you penalty for insufficient funds. Inform your bank in advance before the SIPs are due and also the AMC to not initiate the debit request for any charges levied by the bank. These days AMCs offer an SIP pause feature which allows you to take a temporary break from investing in case of insufficient funds or any other reason. However, the pause feature is temporary, with the understanding that you will restart the SIP soon.
