• 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.