InvestorQ : I am having a number of equity fund SIPs running currently. Can I pause this SIP for some time and then restart it? Does the fund offer the option?
prachi Patwardhan made post

I am having a number of equity fund SIPs running currently. Can I pause this SIP for some time and then restart it? Does the fund offer the option?

Answer
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6 months ago


Interestingly, few mutual funds have the facility of pausing SIPs, although some funds and aggregators have inserted that facility now. This facility has been necessitated by the Coronavirus-related lockdown hitting cash flows. Most companies announced salary cuts and even layoffs; or at least mandatory leave without pay. This has had a big effect on systematic investment plans (SIPs) of mutual funds. A better option than terminating these SIPs would be to just pause them and restart after a few months so that long term goals are not impacted. As of now, only few fund houses offer this facility although more are rushing to offer the same. For example, in the case of ICICI Pru, the pause can be implemented with an email from the registered email id. The SIP restarts automatically once the pause period ends. Mirae provides a pause button on its web site. Then there are platforms like Scripbox that have made it easy for customers to pause where they can select the “Skip SIP” option from the dashboard. Of course, adequate notice is a must as it can avoid cheque bounces and bank charges, in the process also spoiling your credit score.