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.