If you have started SIP, then try to continue the investment continuously because if you miss 3 consecutive installments, you may incur a huge loss.

SIP has become a popular means of investment in today's time. Investment is made in mutual funds through SIP. You can easily invest even a small amount in SIP. In this, you also get many options like daily, weekly, monthly, quarterly for investment. You can choose it according to your convenience. In SIP, the risk is less as compared to investing money directly in shares. Also, the return is also very good in the long term. This return is better than other schemes in many ways. But if you have started SIP, try to continue investing continuously because if you miss 3 installments in a row, you may incur a huge loss.

SIP may get cancelled

Daily, weekly, 15 days or monthly SIP may get canceled automatically if you miss 3 consecutive installments. Whereas quarterly, bi-monthly or long interval SIPs get canceled if you miss two consecutive installments.

Impact on financial goals

Stopping SIP installments affects your financial goals. In such a situation, you lose the opportunity of rupee cost averaging according to the market movement. Every missed SIP reduces the invested amount, which directly affects the power of compounding over time and towards your corpus. In such a situation, you may have to make a bigger investment in the future to achieve your financial goal.

Penalty is imposed in this situation

If you miss the SIP installment, then you are not fined, but if there is not enough money in your account to deduct the money for SIP, then the bank imposes a penalty on you for this; if there is not enough money in the account, the bank can impose a penalty of ₹150 to ₹750. This charge is decided differently in different banks.

SIP will not be missed with this strategy

Whenever our salary comes, the necessary expenses should be completed at the beginning of the month. For the payment of SIP installment, choose the date immediately after the salary. This will ensure that the SIP installment will be deducted on time. After this, you can manage your remaining expenses with the remaining amount.

Run a small amount SIP

To ensure that the SIP installment continues on time, start the SIP with a small amount. Sometimes it becomes difficult to maintain a large amount regularly. You can easily run a SIP of a small amount without any interruption. If you feel that your financial condition is very good, then you can run many SIPs of small installments simultaneously.

If such a situation arises, choose SIP Pause.

If you feel that your financial condition is such that it is becoming difficult to pay the SIP installment, then instead of stopping the SIP, you can choose the option of SIP Pause for some time. Later, when the conditions become normal, you can start the SIP again from there.