How to Stop SIP: Steps to Cancel, Pause or Restart Your SIP
Need to stop your monthly SIP but are unsure what happens to the money already invested? Stopping a SIP only ends future instalments; it does not automatically withdraw your existing mutual fund investment.
You can cancel the SIP permanently or, where available, pause it temporarily.
Here is how SIP cancellation works, what happens afterwards and what you should check before stopping it.
What is SIP?
A Systematic Investment Plan (SIP) is a way to invest a fixed amount in a mutual fund at regular intervals, such as monthly or quarterly. It allows you to invest gradually instead of investing a large amount at once.
How to Pause an SIP
Pausing an SIP temporarily stops future instalments. Your existing mutual fund investment remains invested.
- Log in to your investment app or mutual fund investment platform.
- Go to Mutual Funds or SIPs.
- Select the SIP you want to pause.
- Choose Pause SIP.
- Select the pause period and confirm.
The available pause period and processing time may vary by mutual fund and platform.
How to Cancel an SIP
Cancelling an SIP stops future instalments permanently. It does not withdraw your existing mutual fund investment.
- Log in to your investment app or platform.
- Go to Mutual Funds or SIPs.
- Select the SIP you want to cancel.
- Choose Cancel SIP or Stop SIP.
- Confirm your request.
Submit the request before your next SIP date, as processing timelines vary across platforms and fund houses.
What Happens If I Stop SIP?
When you stop a SIP, future scheduled investments stop, but the mutual fund units accumulated through earlier instalments remain in your portfolio.
Here is what happens:
- Future SIP instalments are discontinued once the cancellation takes effect.
- Previously purchased units continue to remain invested.
- Their value continues to change according to the scheme’s NAV.
- You can generally continue holding those units without restarting the SIP.
- To withdraw the money, you need to place a separate redemption request.
- Applicable exit load and capital gains tax may apply when units are redeemed.
- Existing ELSS units remain subject to their individual 3-year lock-in periods.
How to Stop Auto-Debit for an SIP?
To stop future SIP auto-debits, you can cancel the SIP through your investment platform. You may also manage or cancel the associated mandate through your bank, where supported.
Through your investment platform:
- Log in and go to Mutual Funds > SIPs.
- Select the active SIP.
- Choose Stop SIP or Cancel SIP.
- Confirm the request.
Through your bank:
- Log in to net banking or mobile banking.
- Go to Mandates, e-Mandates, or NACH/ECS.
- Find the relevant mandate.
- Select the available option to cancel or deactivate it.
Submit the request sufficiently before the next SIP date, as processing timelines vary by platform, AMC and mandate type. Avoid intentionally keeping insufficient balance to stop an SIP, as the debit may fail and your bank may levy charges.
How to Restart an SIP After Stopping It?
If you have cancelled an SIP, you can start a new SIP in the same mutual fund scheme. Your existing investment remains invested unless you redeem it.
- Log in to your investment platform.
- Select the mutual fund scheme in which you were investing.
- Choose Start SIP or Invest More.
- Enter the SIP amount and preferred investment date.
- Select or set up the required payment mandate.
- Review the details and confirm the new SIP.
The activation time can vary depending on the platform, AMC and payment mandate. If you had only paused the SIP, it may resume automatically after the selected pause period, so you may not need to create a new SIP.
Are There SIP Cancellation Charges?
Mutual fund SIP cancellation itself generally does not involve a separate cancellation charge. However, cancelling a SIP should not be confused with redeeming your existing mutual fund units.
If you redeem units, other costs or taxes may become relevant, including:
- Exit load, where applicable.
- Capital gains tax based on the type of mutual fund and applicable tax rules.
- Other charges applicable to the transaction or investment platform, if any.
Stop SIP vs Redeem Mutual Fund: What’s the Difference?
The two actions have very different outcomes.
| Factor | Stop SIP | Redeem Mutual Fund |
| Future instalments | Stop | Not necessarily affected |
| Existing units | Remain invested | Units selected for redemption are sold |
| Money credited to bank | No | Yes, after redemption is processed |
| Exit load | Not applicable merely for cancellation | May apply |
| Capital gains tax | Not triggered merely by cancellation | May arise on taxable gains |
You can therefore stop a SIP without redeeming your mutual fund investment.
Common Mistakes to Avoid When Stopping a SIP
Stopping a SIP is straightforward, but a few mistakes can create unnecessary confusion.
- Stopping bank funding instead of cancelling the SIP: Simply keeping insufficient funds in the account does not amount to formal SIP cancellation and could result in failed-debit charges depending on your bank’s terms.
- Assuming cancellation means redemption: Your accumulated units remain invested until you place a redemption request.
- Cancelling too close to the next instalment: A debit that has already entered processing may still go through.
- Ignoring ELSS lock-ins: Cancelling an ELSS SIP does not remove the 3-year lock-in applicable separately to units purchased through previous instalments.
- Revoking a common mandate: Check whether the NACH or UPI mandate is connected to other SIPs before cancelling it.
Is It Good to Invest in SIP When the Market Is Down? Here Is What Usually Happens
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Final Words
Stopping a SIP is different from withdrawing your mutual fund investment. Once your cancellation request takes effect, future instalments stop while the units you have already purchased remain invested.
Also read: SIP vs Lumpsum: Which Investment Strategy Delivers Better Returns?
Disclaimer- The rankings and figures in this article have been compiled from multiple verified reports, credible news sources, and public financial data available as of 2026.
All values are approximate and may vary with newer updates, revisions, or changes in official records.
FAQs
Log in to the platform where you started the SIP, open your active SIPs, select the one you want to stop and choose the cancel or stop option.
Yes, you can generally stop an SIP at any time. However, if the next instalment is already being processed, it may still be debited.
If your platform offers a pause option, select the active SIP, choose “Pause SIP” and select the available pause period.
Future SIP instalments stop, but the mutual fund units you have already purchased remain invested until you redeem them.
SIP cancellation itself generally does not involve a separate charge. However, other charges may apply if you redeem existing units.
Yes. You can start a new SIP in the same mutual fund scheme whenever you want to resume investing.
The processing time varies by AMC and investment platform. An instalment that is already under processing may still go through.
No, stopping the SIP does not remove your existing investment. Your accumulated units remain invested and continue to move with the scheme’s NAV.
Yes. You can generally stop a SIP online through the AMC website or the investment platform where you registered it.
Stopping and cancelling a SIP generally mean the same thing: ending future scheduled investments. Pausing a SIP, however, only stops instalments temporarily.
