POSTED BY January 3, 2013 3:49 pm COMMENTS (4)ON
I have 3 SIP ongoing with sbicapsec and duration for all are 2 yrs, which will end up in next month-Feb-13. According to SBIcapsec, duration can not be extended. You can start new SIP lateron with same fund. SBI can not modify duration, amount of SIP once SIP started. Also, can not start with same fund if SIP is ongoing.
Query: Can we keep all the units after completion of SIP duration? which is advisable redeem or keep as it is (as no need of urgency of the money now).
Thanks in advance.
2021 © Jagoinvestor.com All Right Reserved
4 replies on this article “SIP duration extention”
Thanks to all for clarification!!
@ Pushkar: I also decided to follow the same rule i.e. to set maximum duration as we can stop at any time.
1 more query: would it be advisable to put lumpsum amount e.g. 50k in SBI emerging business MF?
While making a SIP you can set the duration as 12* ( retirement year – current year) so that , no such problem will be faced.
This is also beneficial , as if MF changes some rules after u started it, ( like exit load after 6 months) it will not be applicable to you, ( unless you start a fresh one) and you can stop anytime by informing to ur bank.
Dear Sandeep, you can remain invested in your funds without fresh investments. Alternatively if you feel the performance is not as per your thinking, you may come out & invest else where.
Everytime you invest in a MF (SIP or lumpsum) you will be allocated certain number of units. You can retain this as long as you want even after the SIP is closed and can redeem it as and when you require. With regards to the “redeem” or “keep”, you need ask yourself as to why you invested in SIP in the first place. Retirement? Education? Children education? Based on this goal, take a call.
Also, Get started on – Goal-based Investing — Linking your investment with goals in life keeps you more focused and satisfied in your financial life.