Mutual Fund SIP (systematic investment plan) is one of the most common strategies, adopted by many investors, to increase his or her wealth. Mutual Fund SIP is an investment option in which you can deposit money in any mutual fund schemes of your choice regularly. After a specified period or depending on your need, you can exit the fund along with the returns. Unlike lump-sum investment, you do not need to spend a large investment budget across mutual fund schemes as your investment will grow over time with SIP.
But what if you want to cancel your systematic investment for some reason? How do you do that?
How to temporarily cancel/pause SIP?
Pausing your SIP is possible if the mutual fund company allows such a feature on its fund. Different companies have different procedures for it. You can also pause your SIPs on broker platforms if they allow you to do so. Most mutual fund houses have rules wherein you can pause your SIP for a maximum of 3 to 6 months.
How to cancel SIP offline?
You may cancel your mutual fund SIPs offline also by notifying your bank and the respective AMCs. You can also have your mutual fund agent do it for you.
The procedures to cancel a Mutual Fund SIP offline is as follows:
- Request a SIP cancellation form from your asset management firm or through online Mutual Fund Registrar and Transfer websites such as CAMS and Karvy.
- Fill in the required information, such as your bank account number, scheme name, PAN number, folio number, SIP amount, and the date from which you wish to terminate the plan.
- Submit the paperwork at any branch of the AMC.
It generally takes around 14-21 days to complete the cancellation procedure but fund houses may complete the same in a shorter time frame. So make sure you don’t have any SIP deposit deadlines within that time frame.
How to cancel SIP online?
You can cancel your SIP either with your MF house or directly with the KRA, such as CAMs, Karvy, etc.
How to cancel on KRAs?
There are five different KRAs in India such as CAMS KRA, Karvy KRA, NSDL KRA, NSE KRA, and CVL KRA. The process for SIP cancellation would be similar in all. So, let us understand one of them for your convenience.
For CAMS KRA, you need to initiate a SIP cancellation through their website:
- Log in to https://mycams.camsonline.com/ with your user ID and password
- In the top menu bar, select the ‘My Transactions’ icon
- In the text menu bar, choose ‘Systematic Transactions’ and then select the “active” ones
- The continuing systematic transactions will be visible to you. Each SIP row will have a Cancel link.
- Click the Cancel button and verify the cancellation.
Note: If the cancel button is not available, it means that the asset management company is not allowing online cancellation or the SIP was not generated through CAMs. As for other KRAs, you have to download the cancellation form from their website and follow the offline procedure to cancel SIP.
The following is the step-by-step guide to get Karvy’s Cancellation Form.
- Visit https://www.karvy.com
- Select “Mutual Fund Investor Services”
- Select “Services” from the Downloads section
- Scroll down to the “Services” area and choose SIP/STP/SWP cancellation request from the menu
- You can also access the form here
How to cancel on AMCs?
To begin, visit the website of the asset management company for which the SIP is still active. You will need the folio number, bank account number connected with the folio, and PAN as login credentials for the website. You can also cancel it through mobile applications of the respective AMCs.
Next, you need to choose the ongoing SIP that you wish to terminate and click ‘Cancel SIP.’ As is customary, the cancellation procedure will take approximately 21 days.
To cancel SIPs offline, the investor must get a cancellation form and fill it up before submitting it to an AMC branch office or an RTA office. Investors can also terminate plans online through the AMC or KRA websites. Online cancellation is significantly more convenient.