Facing cash crunch? Here's how you can pause your mutual fund SIPs

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"In an online mode, customers are required to go to their dashboard and select the skip SIP option. It takes few hours/days for the skip request to be implemented. In general, an investor can also send an email, call the helpline or visit the website of their asset management company (AMC) and select the pause option," says Prateek Mehta, co-founder of Scripbox.

AMCs are not supposed to impose any penalty on stopping SIPs.

Mehta, however, advises investors to carefully study the different eligibility criteria for pausing SIPs and the time frame before doing it.

"These can vary across AMC and Registrar and Transfer Agents (RTAs)," he added.

In case, investors started investing in SIP with the support of online agents, they will be required to contact their agents for the same.

Investors who are looking to discontinue mutual fund SIP for a temporary period, can alternatively provide an instruction such as 'stop payment' to bank.

"Once investors are ready to continue making SIP payments, they can intimate the bank and mutual fund company about it," as per BankBazaar.

Investors should note that if they choose the ‘stop payment’ option for a period of more than two months, then the SIP may be cancelled by the AMC.