SIP Tips: If you miss 3 consecutive installments of SIP, you may incur a huge loss, understand this strategy...

SIP has become a popular means of investment in today's time. Investment in mutual funds is done through SIP. You can easily invest even a small amount in SIP. In this, you also get many options like daily, weekly, monthly, and 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 in the long term is very good. This return is better than other schemes in many ways. But if you have started SIP, then try to continue the investment continuously because if you miss 3 installments continuously, you may suffer a big loss.

SIP can be cancelled

If 3 installments are missed continuously, daily, weekly, 15 days or monthly SIP can be automatically cancelled. On the other hand, quarterly, bi-monthly, or long-term SIPs are cancelled if two consecutive installments are missed.

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.

The penalty is imposed in this situation.

If you miss a SIP installment, then you are not fined, but if there is not enough money in your account to deduct 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 Rs 150 to ₹750. This charge is fixed differently in different banks.

With this strategy, you will not miss SIP.

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

Run SIP of a small amount

To ensure that the SIP installment continues on time, start SIP with a small amount. Sometimes it becomes difficult to maintain a large amount regularly. You can easily run 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 situation becomes normal, you can start the SIP again from there.

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