Can I Change or Decrease the SIP Amount Per Month?

The short answer is yes. As life changes, your investment needs can also change. And investing through Systematic Investment Plans (SIPs) provides you with a lot of flexibility. You can change the investment amount and tenure at any time. If your income rises or falls, or if you wish to invest more, you can alter the SIP amount accordingly.

Flexibility in SIPs

If you invest through platforms like ET Money, you have the option to skip your SIPs for a few months. If there's an emergency, you can also stop your SIPs. There will be no penalty from the mutual fund company for stopping your SIP, and your investments will continue to grow as long as you stay invested.

Example Scenario

For instance, assume you have accumulated ?1.2 lakh in 6 months in a mutual fund scheme and then stopped your investments. Your investments will continue to grow if the mutual fund scheme you have invested in continues to give positive returns. For example, if the fund delivers a 10% return in a year after you stopped your investments, the value of your investments will also grow to ?1.32 lakh (?1.2 lakh ?12,000).

Your investments will continue to grow in line with the fund's performance as long as you stay invested and do not redeem the entire investment. Even if you redeem a partial amount, the remaining invested amount will continue to change in line with the fund's performance.

Option to Switch Mutual Funds

Switching mutual funds is also an option for you. If you feel the current mutual fund is not performing as expected, you can switch to a better-performing fund. This flexibility in SIPs allows you to align your investments with your financial goals and market conditions.

Further Explanation

Investing through SIPs is like running a marathon. Marathon runners practice throughout the year but keep stepping up their targets every year, starting from a dream run to a half marathon and finally a full marathon. The same goes with SIPs. It is a disciplined way of investing in Mutual Funds that offers you twin benefits of managing market fluctuations through rupee cost averaging and the power of compounding over the long term.

SIPs have become a popular way of investing in Mutual Funds as they allow small and regular investments over many years. Does this mean you'll be stuck forever with the initial SIP amount you started with? The answer is no. You have the flexibility to change the amount and the frequency of your SIPs to suit your changing financial needs.

Remember, flexibility in SIPs is one of the key benefits of this investment strategy. It allows you to adjust your investments as your income and financial goals change over time.

Conclusion

Whether you want to increase, decrease, or even skip your SIPs, the flexibility provided by mutual fund SIPs can help you adjust your investment strategy to suit your financial needs. By staying disciplined and flexible, you can maximize the growth of your investments over the long term.

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