My SIP was stopped because it failed three times in a row due to low balance. How can I restart my investment in the same fund?
You cannot “restart” a cancelled SIP mandate in the literal sense. When a mutual fund company stops your SIP after three consecutive failures, the old payment instruction is terminated permanently. To continue investing, you need to set up a completely new SIP for the same fund, which involves creating and authorizing a new payment mandate.
Understanding Why Your Old SIP Cannot Be Restarted
I was discussing this with a mutual fund advisor. He explained that when an Asset Management Company (AMC) cancels a SIP due to repeated payment failures, the underlying NACH or ECS mandate is deactivated. For security and operational reasons, this old, terminated instruction cannot simply be switched back on.
The First Step: Set Up a Brand New SIP
My friend had his SIP cancelled and wanted to start investing again. The advisor walked him through the correct process. He had to log into his investment platform, select the exact same mutual fund scheme he was investing in before, and go through the process of setting up a new SIP from scratch. This involved re-entering the monthly investment amount and selecting a new start date.
The Crucial Step: Authorizing a New Payment Mandate
The most important and time-consuming part of setting up the new SIP was creating a new NACH payment mandate. My friend had to authorize this new auto-debit instruction, a process that can take from a few days to a couple of weeks to be approved by the bank. His new SIP installments would only begin after this new mandate was registered and became active.
What Happened to Your Old Investment
My friend’s initial worry was that he had lost the money he had invested before the SIP was stopped. The advisor was quick to reassure him that this was not the case. The cancellation only stops future payments. All the mutual fund units he had already purchased under the old SIP are completely safe and remain in his investment account (folio), continuing to participate in the market.
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