If you cancel your SIP (Systematic Investment Plan), make sure to do it at least 7 days before the next due date. Here's why the amount might still be deducted:
- SIP Cancellation Processing Time: It takes up to 7 days to process a SIP cancellation. If you cancel too close to the due date, the payment request might have already been processed by the fund house or bank.
- Amount Deduction and Unit Allotment: If the amount is deducted despite cancellation, mutual fund units will still be allotted to you. You can redeem these units after 2 working days.
- Refund Not Possible Once Deducted: Once the amount is deducted and units are allotted, a refund isn't possible. You can only redeem the units if you don't want to continue with the investment.
To avoid this, always cancel your SIP at least 7 days before the next scheduled debit date.