If you invest money in mutual funds through SIP (Systematic Investment Plan) every month, then this news is very important for you. Because BSE has started a new service related to it.
new Delhi. The country’s oldest stock exchange, BSE-Bombay Stock Exchange, has launched a new facility on its Mutual Fund Distribution Platform. Now through this, you can stop your SIP for a few months. This facility has been started in view of the corona epidemic.
Through SIP, there is an opportunity to convert small investment into crores – SIP or Systematic Investment Plan gives you the opportunity to put a certain amount in your preferred Mutual Fund Scheme every month. It is usually started in Equity Mutual Fund.
Discipline is very important in Mutual Fund investment. SIP maintains this discipline of yours. Apart from this, SIP continues to invest in Mutual Fund regularly even if there is a boom or slowdown in the stock market. If you have decided to put a fixed amount every month in a mutual fund scheme, then you will have to find time for it.
Second thing is that if you take the time to invest in Mutual Fund and if the stock market is weak or fast, then you feel that your investment should not sink and because of this you defer the decision.
SIP saves you from all these troubles and invests the pre-decided amount in your preferred Mutual Fund scheme on your scheduled day from your bank account. The biggest thing is the benefit of compounding.
If you invest in Mutual Fund for a long period of time and earn returns, then you get returns on this return also until you withdraw that amount. This helps you in the end to raise a large fund.
What is SIP Pause Service?Exchange has given information about this facility. According to this, this option will allow asset management companies to stop SIP for some time to their customers. Investors can then start their own systematic investment plan, ie SIP.
BSE has said that due to the lockdown, people are thinking again about investment decisions. Many are having difficulty in continuing their regular investments. Due to this, many investors have redeemed their investments. Many have stopped or stopped the SIP.
The BSE has said that under this facility, pose registration will be done according to the terms of different asset management companies (AMCs). He said that investors and members have been demanding about it. The exchange is happy to say that it has started the SIP Pause facility on the BSE Star MF platform.
Currently, nine AMC schemes have pause facility. These include Nippon India Mutual Fund, L&T Mutual Fund, Edelweiss Mutual Fund, BOI Aksa Mutual Fund, Essel Mutual Fund, DSP Mutual Fund, Aditya Birla Sun Life Mutual Fund, HDFC Mutual Fund and Mahindra Mutual Fund.
Under Sip Pause, you are given the option to stop your SIP for some time. This does not require the SIP to be closed. The SIP can be restarted once the cash flow recovers. This facility can be used only once during the entire duration of the SIP.
Investors who register SIPs through physical mode can ‘pause’ their SIP for 3-6 months by logging into the fund house website. This work can also be done by sending an email to the fund house. For this, a registered email ID has to be requested. In this, the start and end date of the pose with the folio number will have to be told.