How to Exit from SIP: A Comprehensive Guide

Systematic Investment Plans (SIPs) are a popular investment strategy that has gained immense popularity among investors. However, there may arise situations where you need to exit from an SIP. This guide will walk you through the process of how to exit from an SIP, either online or via physical submission, ensuring you understand each step meticulously.

The Process of Cancellation

Cancelling a SIP is a straightforward process. Typically, you can log into the fund house’s website and look for options to pause or stop the SIP. If the website does not provide such options, you can request your bank to stop the direct debit for the SIP.

The cancelation process can be done online. Here are the steps:

Online SIP Cancellation Process

Select Mutual Fund Investor Services

1. Begin by logging into your fund house website.

2. Navigate to the ‘Mutual Fund Investor Services’ section.

Access the Service Area

3. Look for the ‘Services’ section within the ‘Downloads’ section.

4. Scroll down to the ‘Services’ area and choose ‘SIP/STP/SWP cancellation request’.

5. Alternatively, you can access the form directly from the website.

Standard Process for SIP Discontinuation

Similar to resigning from a job, exiting from an SIP involves a formal application. You need to submit an application form to the Asset Management Company (AMC) or its agent, indicating your intention to withdraw from the SIP scheme. Options are available to either redeem the accumulated units or fully redeem the scheme.

how to submit the application

1. Direct Submission: You can write your folio number and the fund name on a white paper and subject it to the Close Automated Management Services (CAMS) office. This process is usually handled at a CAMS office.

2. Processing Time: The process can take approximately one month to deactivate your SIP, during which time you may experience one more automatic debit if the auto-debit date falls within the one-month period. Once the SIP is deactivated, you can redeem the entire amount.

Conclusion

Exiting from an SIP should be a strategic and informed decision. Whether you choose to discontinue online or through physical submission, ensuring that the process is properly documented can save you from any unnoticed debits. Understanding the nuances of the cancellation process can help you manage your financial investments effectively.

For any further queries, please contact your AMC or CAMS office for more detailed assistance.