If you are someone who has started a SIP or Systematic Investment Plan, you know the importance of regular investment. But what happens if you miss a month of payment?
The first thing that comes to mind when skipping a payment is a penalty. However, it may not always be the case. Most mutual fund companies are quite lenient when it comes to SIPs. They understand that life happens and that sometimes people forget or don’t have the money to pay. So, if you miss a payment, usually the mutual fund company will not charge a penalty.
That being said, there are still some consequences to skipping a payment. First, you will lose out on the potential returns your money could have earned if it had been invested. Additionally, if you miss payments thrice, it could be seen as an indication of financial instability, and the mutual fund company might decide to terminate your SIP.
The best way to avoid any penalties or consequences of skipping a payment is to make sure you have enough money in your account to cover the amount of your SIP. If you are having trouble doing this, you can always adjust the amount of your SIP or switch to a different investment option.
For more information on investment assets and financial management, you can rely on Future Value, a pool of financial experts that can guide you through this and help you in your investment journey.