How To Stop SIP?
- 9th September 2025
- 10:00:00 AM
- 8 min read
The Assets Under Management (AUM) for SIP surged to INR 15.31 lakh crore by June 2025, which is now making up for 20.6% of the entire AUM of the mutual fund industry in India. This underscores the growing discipline and trust in SIPs.
However, learning the right way to stop SIP ensures your financial planning stays on track, as funds may underperform or a financial emergency occurs.
Why Investors Pause or Stop SIP Between Tenures?
As an investor, you can pause or cancel your fund investments, even before tenure, for various reasons. Here are the 4 most common reasons for which mutual fund investors cancel their investments:
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Sudden Market Fluctuation
In FY25, the Net Asset Value or NAV of several mutual funds dropped by 30% due to sluggish earnings, concerns of trade war, etc. In such cases, like other investors, you might pause or stop SIP to prevent further losses.
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Poor Performance of Funds
As of 2025, 3 equity fund categories in India have been performing poorly and have made losses of up to 7.45%. As a mutual fund investor, you might not want to continue with a poorly-performing fund category and withdraw from such funds.
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Financial Emergencies
Financial emergencies can occur at any time, and for immediate access to funds, you can withdraw your investment funds. However, you can withdraw from an open-ended fund anytime, but a 1% exit load applies based on the fund’s policies.
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Changes in Objective and Fund Manager
Fund objectives or the fund manager of a mutual fund can change during the tenure in which you are invested. In both cases, investment strategy, asset allocation, etc., are impacted, leaving a potential for a negative return that influences you to pause or stop SIP permanently.
How to Stop SIP of Mutual Funds Temporarily?
If you are going through a financial crunch or you see your fund is performing poorly but expect a revival in a shorter time period, pausing an SIP is a better option rather than stopping it.
You can do it by contacting your bank for transaction-related concerns, and your AMC to learn the rules on how to stop SIP temporarily as follows:
- Contact your bank or access the banking app or portal and submit a request to pause your auto-debit facility for the mutual funds. Mention how long you want to pause the auto-debit.
- Contact your AMC and learn how long they allow a pause to your SIP. Most fund houses allow up to a 6-month pause to mutual fund SIPs.
- However, do not forget to resume your SIP after the pause, as your AMC will automatically cancel or stop SIP permanently.
Process to Stop SIP Offline in Detail
If you are curious to learn how to stop a SIP offline or traditionally, follow this 3-step guide:
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Obtain the Correct Form
Contact your AMC or visit their physical branch if they have one, and obtain the form to stop SIP.
Alternatively, you can visit the websites of Registrar and Transfer Agent (RTA) such as KFintech or CAMS and download the form.
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Fill out the Important Details
In the specific sections of the form, fill out crucial details such as:
- Your updated PAN details and information about your linked bank account.
- Declare the name of the mutual fund for which you want to stop SIP with your folio number.
- Declare the SIP amount and the date of cancellation of the SIP for the fund.
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Form Submission
Submit your duly filled form at the physical branch of your AMC or courier it to them. You can also send it to the regional office of the Registrar and Transfer Agent office. Note that an offline application takes up to 21 days to fulfil your request.
PL Capital Group – Prabhudas Lilladher offers you a seamless online platform for investments in equities, mutual funds and more. Download the PL Capital app to learn more.
A Detailed Process to Stop SIP Online
If you want to know how can I stop SIP online, then the process is much easier and there are multiple channels to do it:
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From the Online Portal of Your AMC
In case an Asset Management Company, or AMC, takes care of your mutual fund investments, raise a request to stop SIP online:
Step 1: Open the mobile or web application of your AMC or head to their website.
Step 2: Locate the mutual fund section there and find the fund option for which you want to stop SIP.
Step 3: Choose the option to stop or cancel the SIP and follow the on-screen prompt.
Step 4: Similar to an offline request, your AMC might take up to 21 days to process your request.
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Access Your Mutual Fund Investment Platforms
As of FY25, there are over 4000 SEBI-registered stockbrokers in India that provide mutual fund investment options along with various popular banks. If you invest in mutual funds directly through such providers, you can stop SIP in the following manner:
Step 1: Open the dedicated app of your broker or bank and log in with your credentials.
Step 2: Head to the mutual fund section and choose your specific fund to cancel.
Step 3: Choose the cancellation option and submit your request.
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Use the CAMS Website
Here, learn how to stop MF SIP online using the CAMS website in 4 easy steps:
Step 1: Open the official CAMS website on your browser and log in with your credentials.
Step 2: Hover over the ‘My Transactions’ icon on the menu bar, select ‘Systematic Transactions’ and choose ‘active’ SIPs.
Step 3: There, you will see all your active SIPs listed and a cancel button next to each of them.
Step 4: Select the respective cancel button next to the fund for which you want to stop SIP, and verify your request
Note that you can follow a similar process on other websites like KFinTech KRA, NSE KRA, NSDL KRA, CVL KRA and stop your SIP.
Why Should You Not Stop Your Mutual Fund SIP Investment?
Losing out on compounding effect, tricky market timing, and derailment of investment goals are some drawbacks of stopping SIPs:
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You Missout on the Compounding Effect
SIPs generate returns for you using a compounding effect, which increases your return potential. Considering there is no dip in fund performance, if you stop SIP in between, you lose out on such an opportunity. Suppose you stop SIP of INR 5,000 in 5 years instead of 10 years at 12%, you might end up with only around INR 4.12 lakh instead of over INR 11 lakh.
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Face Losses to Time the Market
You might stop your current SIP and start investing again when the market is up again. However, it is a tricky process to time the market and even seasoned investors might get it wrong and face losses. Therefore, staying invested is the wise option for optimal returns.
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Impacts Your Investment Goals
As of early 2025, the mutual fund market in India saw net inflows of INR 4.18 lakh crore, showing rising interest in securing financial futures. If you have started a mutual fund investment to secure your and your family’s financial future, stopping it derails the goal.
Conclusion
As an investor in mutual funds, you might wonder about the process to stop SIP. The reason might include the underperformance of funds, changes in fund objectives or a sudden financial need. Therefore, fund houses allow you to temporarily or permanently stop your SIPs both online and offline.
With PL, you can start your mutual fund investment completely online. Download the PL Capital app, choose your fund and start investing!
Frequently Asked Questions
1. Can I exit my SIP anytime?
Yes, you can cancel or stop SIP anytime you want after your investment, temporarily or permanently. However, if you also want to withdraw funds, check the exit load and applicable timeframe as per your fund.
2. What happens if I stop paying my SIP?
If you stop or pause your SIP, you do not get any new fund units allocated. However, the remaining allocated units stay invested and keep performing as per the performance of the underlying assets.
3. Can I stop an SIP partially or reduce the SIP amount?
To reduce your SIP amount, you must stop SIP and initiate a new one with a reduced amount.
4. Are there any charges or penalties for stopping an SIP?
No, fund houses do not impose any additional charges to pause or stop your current SIP.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
