Investing in Mutual Funds through SIP offers a lot of flexibility. Investors can control the amount they want to invest, tenure for which they want to invest, frequency with which they want to invest (weekly, monthly, quarterly, etc.).
But once you start a SIP, are you bound by the initial choices made until the end of your SIP tenure?
The answer is NO. For instance, if you start a monthly SIP of INR 5,000 in a fund for a 7-year period, you have the flexibility to increase or decrease its tenure at will, reduce or increase your SIP instalment depending on your financial well-being. SIPs are one of the best long-term investment options you can fall back on. These flexible features make them hassle-free and highly liquid as compared to other investment options.
In fact, to reduce the hassle of renewing and extending SIPs periodically, you may even choose to opt for perpetual SIPs and continue in an uninterrupted manner till you achieve your financial goals. In times of need, you have the flexibility to pause your SIP. If you wish to stop or pause your SIP before completing the tenure, send an application form at least 30 days before the next SIP due date to be safe.