With auto-debit feature or adding SIP Biller, you don’t need to remember your investment dates. Your account will be auto-debited on the specified date and notifications will be sent to keep enough balance in your account as the date approaches. So there is no fear of missing any payment.
Moreover, there is no penalty charged on missing the monthly SIP payment and the folio won’t be discontinued. And the money invested so far will continue to earn a return and you can withdraw it anytime.
However, if the account doesn’t have sufficient balance, you should arrange some funds.
One of the cool things about SIP is in case you miss your payments, there’s no penalty. Your investment will continue to be active and you can resume your payments anytimebecause, though, the Mutual Fund companies don’t penalize for non-payment of SIP instalments, the SIP investment will automatically get cancelled if 3 consecutive SIPs fail. That is, if you fail to make the payments for 3-consecutive months. Also, you will have to pay penalty fees to your bank for dishonoring the auto-debit payments. Hence, it is advisable to stop SIP payment by sending a request at least 30-days in advance.