How to Redeem or Cancel your SIP Investment in Five Simple Steps

SIPs are Systematic Investment Plans for a reason – they help you systematically attain your financial goals. Often, when you reach these goals, the next step you plan is to exit.

A SIP calculator can give you an insight into how your investment will take shape in the future. Yet, it does not take volatility into account. A rampage in the stock market often forces people to exit their current positions. It can also be because the investor no longer has faith in the market.

Whatever the reason, make sure that you have verified through an able mutual fund SIP calculator or a SIP return calculator to understand your action’s feasibility.

This article lists down five simple steps to redeem your SIP investment.

Steps to Redeem/Cancel Your SIP Investment

You can cancel or redeem your SIP investment online or offline. If you invest online, you already have the login credentials. You can use it to cancel your existing SIP investment. If you want to take the offline route, you can grab a Stop SIP form and fill in the requisite details.

Steps to Exit Your SIP Investment

Here is how you can cancel or redeem your SIP investment in five easy steps –

  1. Grab the Stop SIP form or inform your asset management company

If you want to submit the request offline, you can collect the Stop SIP Form offline or from your broker’s website. You can also contact your mutual fund agent or asset management company for the same.

For online users, visit the mutual fund website. Enter your login credentials and select the requisite SIP to cancel or redeem.

  1. Fill the form or enter the reason for cancellation

Once you have access to the form, you can fill it in manually. If you have invested through an asset management company, request a cancellation and provide them with a reason.

  1. Fill up an appointment form with AMC or Registrar

It is applicable only for those who invest via an asset management company. They will request you to fill an appointment form with AMC or Registrar and transfer agents. It will contain the details of your SIP and other information, such as PAN and the SIP amount.

  1. Submit the request for cancellation form

Once you have filled up the requisite form, you can submit the form at the nearest AMC, RTA, or your broker’s office. For online users, you can click on the “Cancel SIP” option and click on “Confirm.”

  1. Wait for up to 30 days for approval

It is imperative for you to understand that there are multiple parties involved in a SIP landscape. If you have requested the cancellation online, it can take up to 30 days for them to process it.

Alternatively, offline processes take up to 21 days for approval. You may also have to inform your bank to cease the standing instructions for periodic payments.

Your SIP Deserves Another Chance

We understand that cancelling a SIP is often the last resort, but it is worth another look before pressing the “CANCEL” button. Use CRED’s SIP Calculator to understand your SIP’s future and decide if it is viable to keep it alive and running.

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