Will SIP gets cancelled if account does not have sufficient balance ?

POSTED BY Jai ON March 6, 2014 8:57 am COMMENTS (2)

What happens in case my savings bank account has low balance (say Rs 2500 and min balance requirement is Rs 1000) and next day ECS for MF SIP is due (worth Rs 5000). Would this SIP transaction be cancelled since total balance does NOT cover SIP amount of Rs 5000 or would available funds i.e. 2500 will be utilized for this SIP transaction?

2 replies on this article “Will SIP gets cancelled if account does not have sufficient balance ?”

  1. ashalanshu says:
    March 6, 2014 at 1:27 pm

    Dear Tonsi, the particular SIP transaction ‘ll be bounced. Future SIPs ‘ll continue. Some funds do have a policy for cancellation of SIP mandate if 3 bounces happen over the SIP term or 1Y.

    Thanks

    Ashal

    Reply
  2. Viren Phansalkar says:
    March 6, 2014 at 1:11 pm

    I think, the current month’s SIP transaction would not take place at all due to insufficient balance.
    And if this happens consecutively for 3 times, the AMC cancels the SIP itself.
    This is what I had read long time back… not sure if it still holds true or my source was correct….

    Thanks,
    Viren

    Reply

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