By Admin 
SIP i.e. Systematic Investment Plan in mutual funds has become quite popular among investors nowadays. A lot of funds can be prepared in the long term by investing a little amount every month. The biggest feature of SIP is that you can invest regularly in both equity and date funds.
Do you also want to shut down SIP?
Many times people make up their mind to shut down the SIP due to the decline of the market, low return or money constraints. Wait on! It is very important to understand some important aspects before closing SIP in the middle.
What do your financial goals say?
If your goal is complete, such as a child’s education, buying a house or retirement plan, then this can be the right time to shut down SIP. But if your goals are still incomplete, then it will be prudent to continue SIP.
Is your fund performing well?
If your fund is continuously performing weak with your peer funds, then be alert. But once compare the fund with the entire market. Is it not that it is just a short-term Dip? Decide from a long -term perspective.
There is no change in the objectives of the fund?
Sometimes the fund house changes the objective of its scheme so that it gets big profits. If that new objective does not match your personal goals, then it would be right to get out of SIP.
what your investment portfolio says?
Will the closing of SIP not have an overexposure in your portfolio? That is, one sector or asset class can be more heavy, which can increase the risk. It is always necessary to keep the portfolio diversified.
Understand the long term trend of the market
Sometimes the fund of SIP goes into a decline as some geopolitical upheaval in the market is going on (eg international tariffs, war). In such a situation, it would not be prudent to stop the investment and stop the investment. The fund may come back on track in a few months.
Pause SIP if needed, not closed
If your problem is due to lack of cash crunch, then instead of completely closing the SIP, pause for a few months. When the situation improves, start again. SIP is a long term commitment, leaving it in a little problem can harm your financial future. Before taking the decision, check your need, market trend and fund performance deeply.
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