Systematic Investment Plans (SIPs) have become an effective way of investing in mutual funds, providing the advantages of disciplined investment and cost average. However, there may come a point when you choose to stop SIP in Axis Mutual Fund. This could be the result of financial challenges, bad fund performance, or a change in your financial goals.
Stopping a SIP in Axis Mutual Fund is simple, but you must follow the right steps to avoid any complications or fines. In this detailed guide, we’ll guide you through the step-by-step procedure of canceling SIP in Axis Mutual Fund using multiple platforms. We’ll also go over the primary factors to consider before discontinuing SIPs, as well as alternative choices that may help you better manage your financial resources.
Methods to Stop SIP in Axis Mutual Fund
You can stop SIP in Axis Mutual Fund through different methods, including online platforms and offline requests. Let’s explore each method in detail:
a) Through Axis Mutual Fund Website:
Stopping SIP directly through the Axis Mutual Fund website is the most straightforward method. Follow these steps:
- Visit the official Axis Mutual Fund website.
- Log in using your registered credentials.
- Go to the “My SIP” or “Investment” section.
- Select the SIP you want to cancel.
- Click on the “Stop SIP” or “Cancel SIP” option.
- Confirm the request by verifying the details.
You will receive a confirmation email once the SIP cancellation is processed.
b) Through Axis Mutual Fund Mobile App
You can also stop SIP using the Axis Mutual Fund app:
- Open the Axis Mutual Fund mobile app.
- Log in with your username and password.
- Navigate to the “My Investments” section.
- Choose the SIP you wish to stop.
- Tap on the “Stop SIP” button.
- Confirm the request and verify the details.
You will receive an SMS or email confirmation once processed.
c) Through Online Platforms (e.g., Groww, Paytm Money, Zerodha)
If you have invested in Axis Mutual Fund through a third-party platform like Groww, Paytm Money, or Zerodha, you can stop SIP as follows:
- Open the respective platform’s app or website.
- Log in to your account.
- Go to the “Investments” or “Portfolio” section.
- Select the SIP under Axis Mutual Fund.
- Click on the “Stop SIP” or “Cancel SIP” option.
- Confirm the request and verify the details.
You will get confirmation via email or SMS.
How to Fill Out and Submit a SIP Cancellation Form at the Branch
Filling out a SIP cancellation form correctly is essential to avoid processing delays. Here’s how to fill it out:
- Investor Name: Write your full name as per your PAN card.
- Folio Number: Enter the folio number associated with the SIP.
- Fund Name: Mention the name of the Axis Mutual Fund scheme.
- SIP Registration Number: This can be found in your SIP statement.
- Reason for Cancellation: Mention the reason (optional).
- Signature: Sign the form as per your bank records.
Submit the completed form at the Axis Mutual Fund branch. Processing usually takes 2–5 business days.
Important Things to Know Before Stopping SIP
Before you cancel your SIP in Axis Mutual Fund, you must consider a few important factors that may affect your investing and financial goals.
One of the first factors to examine is the exit load. Some mutual funds charge an exit load if you cancel your SIP before a certain time. This fee is withdrawn from your total investment value, which may affect your overall profits. To avoid unexpected expenses check the terms and conditions of your Axis Mutual Fund program.
Another important factor is the tax effects. Profits from SIPs are responsible for capital gains tax depending on how long you’ve maintained the investment. If you discontinue your SIP early, short-term capital gains may be taxed at higher rates than long-term gains. Understanding these tax guidelines will allow you to avoid avoidable tax burdens.
Stopping a SIP may have a big impact on your financial goals. SIPs are most effective when used over time because they benefit from the advantages of compounding and rupee cost averaging. Stopping your SIP early may interrupt your long-term investment strategies and stop you from achieving your financial goals.
Finally, if you’ve invested in an equity-linked savings scheme (ELSS), you should be aware of the lock-in period in Mutual Fund. A required lock-in period for ELSS funds is three years. This means that you are unable to stop or withdraw your SIP before the end of this period. If your SIP is in an ELSS fund, you must wait until the lock-in period expires before making changes.
Reasons to Stop SIP in Axis Mutual Fund
Before canceling SIP in Axis Mutual Fund, you should understand the reasons. Some of the common reasons are:
Financial Concerns
Unexpected expenses, job loss, or new financial responsibilities may make it difficult to maintain SIP investments. In these cases, suspending SIP may provide temporary a break.
Poor Fund Performance
If the Axis Mutual Fund scheme you invested in continually underperforms market standards, it may be time to stop the SIP and investigate better-performing alternatives.
Changes in Financial Goals
Your financial goals may change over time. For example, you could adjust your goal from quick growth to consistent income. This could involve stopping your SIP with Axis Mutual Fund and switching to another investing choice.
Availability of Better Investment Options
If you find a higher-performing mutual fund or another investment platform that better meets your financial goals, you can choose to discontinue your SIP in Axis Mutual Fund and change your investments.
Alternatives to Stopping SIP
If you are thinking about stopping your SIP with Axis Mutual Fund, there are other options to consider. You can stop the SIP rather than cancel it entirely. Axis Mutual Fund allows you to stop your SIPs for a set length of time, which helps manage cash flow during times of financial difficulty.
Another alternative is to cut the SIP amount rather than discontinue it completely. Reducing the investment amount allows you to continue investing while reducing financial stress. If performance is an issue, you can switch to another fund in the Axis Mutual Fund family for higher returns. When moving funds, double-check the mutual fund’s ARN and RIA code to ensure that you are making the correct change.
You can even change the SIP frequency from monthly to quarterly to reduce your financial pressure while still keeping investment consistency. These choices allow you to stay on track with your financial goals without pausing your investments.
Conclusion
Stopping SIP in Axis Mutual Fund is a simple process if you follow the proper requirements. Whether you cancel your SIP online, via a mobile app, or at a branch, make sure you understand its effects on your financial goals and tax liabilities. If you’re unsure, talk with a financial professional and Mutual Fund agents or consider other choices such as suspending or lowering your SIP. Effective SIP management can lead to long-term financial success.
Stopping SIP should be an intelligent decision, not an emotional response to market movements. Take your time, consider all possibilities, and make a smart decision.