The world is badly hit by Coronavirus forced lockdown. People around the globe are losing jobs or are facing pay-cuts? Hit by the pandemic people are deciding to stop their SIP, but hey, why stop? When you can pause it for a few months.
Before hitting the STOP button you can opt for ‘PAUSE your SIP’ offered by mutual funds. The PAUSE option allows the investors to pause their SIP’s for one or three months and then restart their SIP’s. However, it differs from one fund house to the other.
Recently, Nippon India Mutual Fund relaxed the conditions for the pause facility. In a notice issued by the fund house, it said, "The criteria of acceptance of SIP Pause request only after completion of six SIP installments shall not be applicable for a temporary period from April 27 to June 30. Consequently, during this temporary period, investors can request for SIP Pause facility, irrespective of the number of SIP installments processed in respective schemes."
According to ICICI Prudential Mutual Fund, “In current circumstances, investors who wish to avail the SIP Pause facility can do so by sending an email to the AMC mentioning the folio number. As per the start and end date (not more than three months) mentioned by the investor, the pause facility will be carried out”.
Though the investor must know that the SIP will restart automatically once the pause period is over and the notice to pause the SIP must be given to the fund house 30 days before the next SIP date.
The facility to pause the SIP has been given by all the big fund houses as Nippon India, Aditya Birla Sun Life, ICICI Prudential, Tata, and others.
All you have to do send an email or call the AMC or you may use the online medium to do so. Many have given the pause option on their website.
Happy Investing!
Mutual Fund is subject to market risk please read offer related document carefully before investing.