Tips on modifying your existing SIPs for growth potential

As your financial journey progresses, the need to modify your existing Systematic Investment Plan (SIP) may arise. Adjusting the investment amount, changing the fund, or altering the contribution frequency ensures your SIP balances with your evolving financial objectives. Understanding how to make these adjustments empowers investors to navigate changing circumstances and optimize their investment approach for sustained financial growth. This article discusses the tips to modify existing SIPs.

• Table of contents

1. How to modify your existing SIP?
2. Assess your financial goals
3. Contact a distributor or visit a fund house
4. Provide necessary information
5. Complete necessary documentation
6. Confirm changes
7. Monitor the SIP post-modification

How to modify your existing SIP?

Assess your financial goals

Before making any modifications, reassess your financial goals. Consider whether adjustments to your SIP aligns with changes in your objectives or circumstances. You can also use an SIP calculator to evaluate how changes in your investment amount or horizon might impact your return potential.

Contact a distributor or visit a fund house

Reach out to authorized distributors, a mutual fund house or an investment platform through which you initiated your SIP.

Provide necessary information

Furnish the required details, such as your folio number, personal information, and the specific modifications you intend to make. This might include changes to the investment amount, frequency, or fund selection.

Complete necessary documentation

Some changes might require additional documentation. Be prepared to provide any necessary paperwork promptly to expedite the process.

Confirm changes

After submitting your modification request, ensure you receive confirmation from the fund house or platform. This confirmation typically includes details of the changes made.

Monitor the SIP post-modification

Keep a close eye on your SIP after making modifications. Monitor the fund's performance and ensure the adjustments align with your financial objectives.

Knowing how to adjust your SIP empowers you to align your investment strategy with evolving financial objectives. This adaptability ensures that your financial approach remains in harmony with your evolving circumstances.

Investing in mutual funds, including SIPs, carries inherent risks. Past performance does not guarantee future results. It's important to consider your financial goals and risk tolerance before making investment decisions. Consult with a financial advisor to ensure mutual funds and SIPs align with your circumstances and objectives.

You can efficiently modify your SIP by following the simple steps outlined in this guide. Reassessing your financial goals, reaching out to your fund house or platform, providing necessary information, and monitoring the changes post-modification are integral steps in this process.

FAQs:

How do we increase the SIP amount?

If you wish to increase your SIP amount, you can initiate a new SIP for the additional amount. For instance, if you currently have a SIP set at Rs. 1000 and aim to increase your investment to Rs. 1,500, you would need to start a new SIP of Rs. 500 while maintaining your existing SIPs. This way, you can seamlessly accommodate the enhanced investment without interrupting your ongoing plans. Another convenient way to periodically increase your SIP contributions is through a top up SIP. This allows you to automatically increase your SIPs by a fixed amount at regular intervals. No additional paperwork is required once you opt for this facility and decide the rate and frequency of the increment. A top up SIP calculator can help you estimate the potential impact of such a plan on your final corpus.

Can you invest lumpsum in a scheme in which you have an SIP running?

Adding a lumpsum amount to the same scheme where you're running an SIP is viable and doesn't impact the existing SIP. This allows for an investment of surplus funds, `especially when there's an ongoing SIP.

Is it possible to modify SIP amount?

Yes, you can modify your SIP amount based on changes to your financial situation. Increasing your SIP can be beneficial when your income grows or when you're nearing your financial goals, while decreasing it may be necessary in case of shifting priorities. Regular reviews of your SIP and adjustments according to your needs are important, but maintaining a long-term focus is key to wealth accumulation.

Can I step up my existing SIP?

A step-up SIP allows you to increase your SIP contribution by a fixed percentage at regular intervals (eg: 10% annually). To change your existing regular SIP to a step-up, you will need to find out if your asset management company offers the step-up facility. If yes, you will need to find out if they allow you to directly modify an existing SIP to a step-up, or require you to stop your current

Yes. You can step up your existing SIP, gradually increasing your monthly contribution over time. To step up your SIP, check with your AMC or platform for options, such as automatic increases at predefined intervals or manual adjustments. Make sure the increase is affordable and review your plan regularly to align it with your financial goals.

How can I modify AMC SIP?

If you have invested directly through the asset management company (AMC), you can approach them to modify the SIP. Depending on the company’s processes, you may either be able to modify the existing SIP or you may need to cancel the SIP and start a new one with the revised amount. You can do this process both online on the AMC’s website, or offline by visiting the nearest branch.

Will modifying my SIP affect my returns?

Modifying your SIP can affect your returns depending on the changes made. Increasing the SIP amount has the potential to boost returns, while decreasing it can reduce potential gains. So, it's essential to research thoroughly and consider long-term implications before making adjustments.

How do I modify my SIP online?

First, log in to your investment platform and check if they have the provision of modifying an existing SIP. If so, look for the modify or edit button and make the necessary changes. If not, you may need to terminate your existing SIP and start a new one with the modified details.

locate the specific SIP in the "Mutual Funds" or "SIPs" section. Click on "Modify" or "Edit," then adjust the SIP amount, frequency, or date, and confirm the changes. For AMC SIPs, visit the AMC's platform or contact their customer service for specific instructions.

What factors should I consider when modifying my SIP?

To decide whether to modify your SIP, start by reviewing your financial situation, including changes in income, expenses, and goals. Re-evaluate your risk tolerance based on your life stage and current market conditions, and check if your investment portfolio aligns with your goals. Lastly, consider your investment horizon, and seek professional advice if needed to ensure your SIP adjustments align with your financial objectives.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.