1.A missed SIP instalment happens when there isn’t sufficient balance in the account.

2.Mutual funds do not penalise for missing an SIP instalment.

3.However, the bank will charge you a penalty for the insufficient funds and missing the auto-debit payment.

4.A mutual fund will cancel the SIP only after three consecutive instalments are missed.

5.The existing investments will continue to be invested and earn returns.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.