Facing a financial crunch? Job change? Before you cancel your SIP, understand these important options.
Pause means temporarily halting SIP deductions for 1-6 months. After the pause period, SIP automatically resumes. Your existing units remain invested and continue earning returns during the pause.
When to pause: Job transition, temporary income reduction, major expense (wedding, medical), studying abroad.
Who offers it: Groww, Zerodha Coin, Paytm Money, most AMC websites. Not all fund houses offer this — check before starting.
Stop means permanently cancelling future SIP installments. Already invested units remain in the fund — you haven't sold them. You can start a new SIP later if desired.
When to stop: Financial goals changed, switching to better fund, permanent income reduction.
Example: ₹5,000/month SIP, 15 years, 12% return = ₹25.2 Lakhs. If paused for 3 months in year 5: ₹24.6 Lakhs (₹60K less). If stopped at year 5 (invested ₹3L over 5yr), remaining 10yr compounding alone: existing corpus ≈ ₹9.3L. Compared to continuous SIP ₹25.2L. Stopping early costs ₹15.9 Lakhs!
Some platforms allow reducing SIP amount without stopping. Reducing ₹5,000 to ₹1,000 during tough times is far better than cancelling completely. Even ₹500/month keeps the compounding engine running.
Use our free calculators to see exactly how your money grows.
Disclaimer: This article is for educational purposes only. Not investment advice. Contact: myself@sipcalculators.in