SIP Pause Vs Close: We all do all kinds of financial planning to secure our future. Especially long term investments are started to make the coming time better. For this, most of the people nowadays run SIP. A good amount of funds can be added in the long term through SIP. But suppose you started a monthly SIP of Rs 5,000 to 10,000 and suddenly a financial emergency came in front of you and it became difficult for you to withdraw even its installment, then what will you do? Will you close it or will it be right to decide to pause it? Know about this here.

For how long can SIP be paused?

By using this facility during a financial crisis, you can pause your scheme in between instead of closing it completely. Earlier this facility was available for 1 to 3 months, but now some fund houses provide this facility for up to 6 months. To avail this facility, you have to request the asset management company (AMC) to pause the investment. While submitting the request, you have to see for how many days your company provides the pause facility. If the company approves your request, then the SIP installment will not be taken from you for a certain period. But after the 'pause' period is over, the SIP installment will start getting deducted from your account automatically.

When to choose the option of SIP Pause?

If you face a medical emergency, job loss, or any sudden big expense or if your financial responsibilities increase due to marriage, buying a house or any other family related event and you feel that you will not be able to continue the SIP installment right now, but you can start it again after some time, then in such a situation you can choose the option of SIP Pause and resume your investment after some time.

When is it right to close SIP?
If the financial crunch is such that you do not know when your conditions will become normal, then only you can take the decision to close the SIP. After closing the SIP midway, there is no hope of achieving your goal, but by pausing the SIP, you get relief from paying the installment for a few days, and your investment goal is not affected by it.

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