Business News Desk – In today’s time, SIP has become one of the favorite options of investors. Investment in mutual funds is done through SIP. SIP can be started with small savings and in the long run, a big fund can be created through it. This is the reason why today people run multiple SIPs simultaneously according to different goals.
But suppose you started a monthly SIP of Rs 5,000 to 10,000 and suddenly you face a situation that it becomes difficult for you to continue SIP, then what will you do in such a situation? In such a situation, you will have two options, first either you stop the SIP and withdraw the money and second option is that you stop the SIP for some time and when the situation improves, start it again. Let us tell you which decision will prove to be better for you in such a situation.
First of all understand what is SIP pause?
By using this facility during financial crisis, you can stop your scheme midway instead of stopping it completely. Earlier this facility was for 1 to 3 months, but now some fund houses have increased it to 6 months. To avail this facility, you have to submit a request to ‘Pause’ the Asset Management Company i.e. AMC. While submitting the request you need to check for how many days your company provides pause facility. If the company accepts your request, you will not be charged SIP installments for a certain period. But after the ‘pause’ period ends, the SIP installment will automatically start deducting from your account.
When to choose SIP pause and stop?
If you face medical emergency, job loss or sudden big expenses or your financial responsibilities increase due to marriage, home purchase or any other family event and you feel that you will not be able to continue the SIP installments right now, but You can start it again after some time, in such a situation you can choose the option of SIP pause and resume your investment after some time. But if the financial crisis is such that you do not know when your circumstances will become normal, then only you can decide to stop SIP.
After stopping SIP midway, you have no hope of achieving your goal, but stopping SIP gives you relief from paying installments for a few days, and your investment goal is also not affected by it. If the market sentiment improves after the pause period, then you can get full benefit from it. The best example of this was seen by people during the time of Covid. Due to financial constraints at that time, many people took advantage of the pause facility and later started it again. When the market started recovering after Covid 19, they got huge benefits from it.
