How to Stop or Pause Your SIP Temporarily

Life is unpredictable, especially for self-employed individuals and small business owners. There may be times when cash flow gets tight, and continuing your SIP feels like a burden. The good news is that you can stop or pause your SIP temporarily without losing your existing investments. This guide explains how to do it and what to consider before making this decision.

Can You Actually Pause a SIP?

Yes, most mutual fund houses and investment platforms allow you to pause your SIP for a specified period. The terminology varies — some call it “SIP Pause,” others call it “SIP Holiday” or “SIP Suspension.” The concept is the same: your monthly SIP debits are temporarily stopped, and they resume automatically after the pause period ends.

Alternatively, you can cancel your SIP entirely and start a new one later when you are ready.

Pause vs Cancel: Understanding the Difference

• SIP Pause: Your SIP is temporarily suspended for a defined period (usually 1-6 months). After the pause period, the SIP resumes automatically. Your existing investment remains untouched.
• SIP Cancellation: Your SIP is permanently stopped. To restart, you will need to set up a new SIP with a new mandate. Your existing investment is not affected — only future instalments stop.

In both cases, your existing mutual fund units remain invested and continue to grow (or decline) based on market performance.

How to Pause Your SIP

Through Your Investment App (like Bachatt)

1. Open the app and navigate to your SIP section
2. Select the SIP you want to pause
3. Look for the “Pause SIP” or “SIP Holiday” option
4. Choose the duration of the pause (1 month, 3 months, 6 months, etc.)
5. Confirm the pause
6. Your SIP will automatically resume after the pause period

Through the AMC Website

1. Log in to the AMC’s online portal
2. Go to “SIP Management” or “Transactions”
3. Select the SIP to pause
4. Choose the pause period and submit

Note: Not all AMCs offer an online SIP pause facility. Some may require a written request or form submission.

How to Cancel Your SIP

Online Method

1. Log in to your investment app or AMC portal
2. Go to the SIP section
3. Select the SIP to cancel
4. Click “Cancel SIP” or “Stop SIP”
5. Confirm the cancellation

Important: Submit the cancellation request at least 15-20 days before your next SIP date. Processing takes time, and a late request may not prevent the next debit.

Through Your Bank

If you set up your SIP through a NACH mandate, you can also cancel the mandate through your bank’s net banking portal. However, it is better to cancel through the AMC or app to ensure proper records.

What Happens to Your Existing Investment?

This is the most important point to understand: pausing or cancelling a SIP only stops future instalments. Your existing mutual fund units remain invested. They continue to participate in market movements and generate returns (or losses).

You do not lose anything by pausing or cancelling a SIP. Your money stays in the fund until you explicitly redeem it.

When Should You Consider Pausing Your SIP?

• Temporary cash crunch: If your business is going through a lean period and you need cash for operations
• Medical emergency: When unexpected expenses arise
• Job loss or income disruption: When regular income is interrupted
• Major life event: Wedding, home purchase, or other big expenses

Pausing is a better option than redeeming your existing investments prematurely, especially if your equity funds have not yet completed a full market cycle.

When Should You NOT Pause Your SIP?

• Market crash: This is the worst time to pause. When markets are down, your SIP buys more units at lower prices — this is the best time to invest!
• Fear of short-term losses: SIPs are for the long term. Short-term drops are normal and expected.
• Following news headlines: Media often exaggerates market movements. Do not let news drive your SIP decisions.

Tips for Managing SIP During Tough Times

• Reduce instead of stopping: If ₹10,000 per month is too much, reduce to ₹2,000 or even ₹500. Maintaining the investing habit matters more than the amount.
• Pause the largest SIP first: If you have multiple SIPs, pause the one with the highest amount and continue the smaller ones.
• Set a resume date: When pausing, commit to a specific date to restart. Without a plan, temporary pauses often become permanent stops.
• Restart as soon as possible: Every month of missed SIP is a missed opportunity for compounding. Resume your SIP the moment your financial situation stabilizes.

How to Restart a Cancelled SIP

If you cancelled your SIP and want to restart:

1. Log in to your investment app or AMC portal
2. Navigate to the fund in which you want to restart the SIP
3. Set up a new SIP with your desired amount and date
4. Create a new auto-debit mandate (UPI or NACH)
5. Confirm and start

The new SIP will add units to your existing folio, so you do not need to create a new account or folio.

Manage Your SIPs Flexibly with Bachatt

Bachatt understands that life is not always predictable, especially for India’s self-employed. Our app lets you pause, reduce, increase, or cancel your SIPs with just a few taps. No calls to customer support, no forms to fill. When you are ready to restart, setting up a new SIP takes under a minute.

Download the Bachatt app for complete flexibility over your mutual fund SIPs. Invest on your terms, at your pace.