Increasing your SIP amount is always a good thing but decreasing it is not so good thing. If you are getting promoted and your salary is increasing you should increase your SIP amount you can but if you have lost your job or for any personal reason you want to increase your SIP amount you can do it easily.
How much you should increase your SIP amount?
If you are an existing mutual fund investor and if you want to increase your SIP amount it will be best if you increase the SIP amount 10%. 10% incensement of SIP every year is considered ideal. An investor can increase the SIP amount also can decrease the SIP amount according to that person’s investment capability.
Why you should increase the SIP amount?
Increasing your SIP amount is most important if you do not increase it annually it won’t be that amount you have expected. As India is a second world country and it is still developing so the inflation can be so high or low. To reach your goal you should increase your SIP amount.
How can you increase your SIP amount?
You can simply start a new SIP or you can apply to that AMC for increasing your current amount.
Can you decrease your SIP amount?
You can easily decrease your SIP amount whenever you want but some AMCs do not allow to stop your SIP they feared for losing their business. So the best way is to stop your ongoing SIP and a start a new SIP with a lower amount on that way it will be easier.
- First, you have to write that AMC (mutual fund company) requesting about closing your current SIP account. Gradually AMC’s takes 15 to 30 working days to make any action on this.
- Once you stopped the ongoing SIP account, you will be informed of that.
- You have to fill an auto debt form with your new amount and you can start your SIP again. If you want you also can attach a cheque for the new amount.