Short on funds? Pause, don’t stop!

Your Systematic Investment Plans.

SIPs, as these are popularly known as, are an investment option where one can invest a pre-decided amount in a selected mutual fund at fixed intervals.

Not only are SIPs a great way to invest regularly, they also bring about discipline and help in averaging out costs over the long term.

They are super convenient for you to plan your financial goals!  

While a lot of investors have taken the SIP route, they sometimes face hurdles because of lack of funds.

This could be due to an emergency or an unforeseen situation like the loss of a job or a medical emergency.

In such instances, many people think of cancelling their SIPs to make up for the shortfall of funds, as investments are not a priority at that time.

However, there is a way to manage this better.

You could pause your SIPs instead of stopping them.

Most fund houses offer the facility to pause your SIP for a month or a few.

What are the advantages of pausing your SIP over stopping it?

• Your planned investments for your financial goals will only see a temporary halt, not stop altogether.
• You will resume being regular with your investments, and will not need to start afresh.

So before you hit the STOP, look for the pause in your SIPs!

 

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This article is for information purposes only. The information provided herein is derived from public sources, believed to be from reliable sources. However, no representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. Views expressed herein involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied herein. Kotak Mahindra Mutual Fund/ Kotak AMC is not indicating or guaranteeing returns on any investments. Past performance may or may not be sustained in future. Readers should seek professional advice before making any investment-related decisions and alone shall be responsible for any decision taken.