Missed SIP Payment? Here’s How to Pay It

What Happens When SIP is Missed?

In case of SIP missed due to insufficient funds or any other reasons, the possible consequences that you may face include — 

• Opportunity Loss or Delayed Growth: The investment market is known for its volatility. Moreover, one of the key benefits of SIPs is cost averaging. Thus, if you miss the payment of even one month, you can lose on potential opportunities that could have arisen during the missed period. Consequently, SIP payment missed can also lead to the delayed growth potential of your investment. 
• Paused or Cancelled Investment: Missed SIP instalments may also lead to your investment being paused. Furthermore, when this happens for consecutive payments, your investment may be cancelled altogether. 
• Penalty Fee: Some fund houses may charge a late fee or penalty fee for the same. This may hold true even if it’s a case of SIP missed due to insufficient funds or any other reason. 
• Impact on Investment Returns:  A missed payment can lead to a break in the plan, which can hurt your investment returns. This is especially the case if you miss multiple payments over months.

How to Pay Missed SIP Instalment?

As discussed before, cases of missed SIP instalments can lead to the cancellation of your investment. However, if this is not the case or only a pause has been put in place, you can try out a few things (as per your SIP provider) to resolve the issue — 

• Deposit the necessary amount before the next SIP date — this ensures that the continuity of your investment is maintained.
• Stop or pause the SIP temporarily in case you are facing a financial crisis. Once you have accumulated sufficient money to make up for the SIP payment missed, you can simply resume it at any moment without any additional charges. 
• If your mutual fund house offers the facility, you can use the same to change your SIP details in terms of amount, frequency, or date to suit your financial cycle better.
• Keep a buffer fund in your account so that you can avoid missing your next payment. This ensures that you have enough funds for your SIP, even in case of unexpected expenses. 

Frequently Asked Questions