If you are not able to deposit money in the SIP during the corona period, do not take the station, this option will work, you will get 1 to 6 months of deferment
Many people are facing financial crisis in the Corona era. Due to this, they are not able to invest every month in the SIP of Mutual Fund. If you are missing your installment too and fear that you want to close the mutual fund, then stop. You get the option of 'Pause' facility in mutual funds. You can hold the investment for some time through this. There will also be no penalty on this.
With the 'Pause' facility, you can keep the investment closed for 1 to 6 months. After this, when the situation is normal, it will start automatically again and as before, money will be deducted for investment from your account. This will not cause any harm to your mutual fund scheme. You will be able to continue investing in the future. So what is this option and how can you take the benefit of it, know the complete details.
What is pause facility
On investing in SIP you get the option of 'Pause' facility. Under this, if the investor is unable to deposit money every month for any reason or wants to avoid investing due to the uncertainty of the market, then he can choose this option. Most companies give time for one to 6 months during this period. During this time you will not have to deposit money. After the 'pause' period, if the market conditions are right, then you can stop it or after the deadline is over, the SIP will be cut automatically. No additional interest will have to be paid on this.
How can you get benefits
Any person can take advantage of the pause facility in SIP. For this, you have to inform the asset management company via mail or phone. In the mail, you have to provide your folio number. After which the company will give you this facility. Through this option you can stop investing (SIP) in mutual fund houses. If you start it again, you will not have to make new investment and you will continue to get returns on old investment.