How to Withdraw from SIPs?

However, if faced with any emergency or a change of investment goals, investors often wonder if they cancel SIP and withdraw from it. While the answer is yes, there are some details that you must be aware of.

Read on to find out how to withdraw SIP amount.

Understanding SIPs

SIPs are valid for fixed periods during which a pre-decided amount is automatically taken from your account. This amount is invested monthly, quarterly, half-yearly, or annually in a mutual fund of your choice.

The popularity of SIPs has surged in recent times, considering their ease of access, cost averaging, professional management, and many more benefits.

How to Withdraw from SIP?

You can use the following ways to withdraw SIP amounts -

• Connect with your broker or distributor. After sharing details like your folio number, scheme name and investment amount, fill in the withdrawal form.
• Log in to your trading or DEMAT account online and scan your mutual fund holdings to identify the specific SIP investment you want to withdraw. Next, specify the withdrawal amount and provide other required details to initiate the withdrawal process.
• Reach out to the asset management company (AMC) or its customer service team. Share your investment details like your folio number and scheme name, and fill up the withdrawal form.
• Contact the registrar and transfer agent (RTA) associated with your mutual fund investment to initiate the withdrawal process.

Stopping or Cancelling SIP

In case you wish to stop SIP altogether and withdraw all your funds, you have the option to do so.

Generally, the process to stop or cancel SIP is quite easy. You can simply log into your mutual fund account online or access the transaction platform of your RTA or the distributor. Next, locate the option to ‘cancel or stop SIP’ and choose it.

Things to Consider Before You Stop SIP

While we’ve now understood how to withdraw SIP amount, it’s also important to understand the possible consequences of the same.

Check out the key factors to consider before you stop or cancel SIP -

• Lock-in period — SIPs in some mutual funds like ELSS funds have lock-in periods. 
• Exit fees — Mutual fund companies levy a certain charge if you withdraw your funds before a specified tenure. 
• Potential loss of returns — SIPs are investment instruments for the long term. If you withdraw your funds, you may lose potential gains.

Frequently Asked Questions