- Missing your mutual fund SIP instalment usually happens when an investor has insufficient balance in the bank account or when your mandate is not approved.
- At such times most investors feel that missing an SIP may lead to some consequences like penalty, cancellation of future SIPs etc.
- Usually, if you miss 3 consecutive SIP for whatsoever reason then AMC will cancel your future SIP instalment.
- Also, in case of insufficient balance your bank will charge you a penalty (similar to cheque bounce case).
If you miss an SIP for a particular period you are expected to maintain the required balance amount to smoothly carry out the next month’s SIP.
Click here to know how you can pay a missed SIP instalment.
Note: In some cases if the investor defaults on an SIP, the bank can charge a fee to the account holder. This penalty is charged on “non-maintenance of sufficient balance” for auto-debit mandates via ECS (Electronic Clearing Service). Banks have their set of charges for ECS rejection.