How to Extend the Period of Your SIP in Mirae Asset Mutual Fund: A Comprehensive Guide

Many investors are curious about how to extend the period of their Systematic Investment Plan (SIP) in mutual funds like the Mirae Asset Small Cap Fund. If you have a SIP currently set for a one-year term but would like to extend it to a longer period, such as fifteen years, you have a few options. This guide will walk you through the processes of extending your SIP period.

Understanding the Restrictions on SIP Period Changes

Firstly, it is important to note that you cannot change the duration of your SIP until it has completed the initial term. For example, if your SIP is currently for one year, you will need to wait until it has run its course before you can consider extending it further.

Extending Your SIP Period: Your Options

When the one-year term of your SIP is about to expire, you will have two primary options to extend its period:

Option 1: Register a New SIP with a Longer Duration

Once your current SIP term is complete, which typically takes one year, you can register a new SIP with a longer duration. For instance, you can set up a new SIP for the remaining fourteen years, which would cover your desired fifteen-year period. This method allows you to continue investing and reaping the benefits of a long-term SIP without unnecessary hassle.

Option 2: Cancel Your Existing SIP and Start a New One

Another method involves canceling your existing SIP and then starting a new one with a longer term. This approach requires additional administrative steps, including initiating a cancellation process and initiating a new SIP with the desired duration. This method may be more cumbersome, but it gives you the flexibility to start with a clean slate.

Suggestions for Setting up a Long-Term SIP

I would strongly recommend setting up a new SIP with a very long duration, such as 99 years. By doing this, you ensure that you never have to think about extending your SIP ever again. This creates a hassle-free, long-term investment plan without the need for frequent management.

Extending Your SIP Period: Online and Offline Methods

Depending on where you initiated your SIP, you can take different steps to extend its period:

Online SIP Extension with Mirae Asset Mutual Fund

If you signed up for your SIP online with Mirae Asset Mutual Fund, you can log in to their website to make the necessary changes to your SIP period. Look for your account details, find the section related to your SIP, and make the adjustment accordingly. This method is quick and convenient.

Offline SIP Extension through Distributor

If you set up your SIP through a distributor, you may need to contact the distributor directly. They will provide you with the relevant forms needed to change your SIP period. This process may take a bit more time, but it allows you to extend your SIP through your preferred intermediary.

Frequently Asked Questions (FAQs)

Q: Can I extend my SIP period without incurring any additional costs?

A: Generally, extending your SIP period does not incur additional costs, but it is recommended to check with Mirae Asset Mutual Fund or your distributor to confirm any specific fees or charges.

Q: Is it necessary to extend my SIP for a long-term investment period?

A: Extending your SIP does not guarantee long-term performance. However, it provides a hassle-free way to stay invested for the long term, which is beneficial for investors looking to avoid frequent financial management.

Q: Can I extend my SIP period after only six months?

A: Typically, you cannot change your SIP period until the initial term has ended. For instance, if your SIP is one year, you will need to wait until the end of the year to extend it.

Final Thoughts

Setting up a long-term SIP in mutual funds such as Mirae Asset Small Cap Fund can be a strategic investment. By understanding the steps and options available, you can effectively extend your SIP period and enjoy the benefits of a growing investment portfolio over a longer timeline.

Remember, setting up a SIP with a long-term perspective can significantly impact your investment growth. Don’t hesitate to reach out to the mutual fund company or your financial advisor for personalized advice tailored to your specific needs.

Happy investing!