Many fund houses and KFintech have introduced SIP pause facility through which distributors can discontinue SIP of their clients for 1-6 months.
Of the 23 AMCs working with KFintech, 17 fund houses – Axis MF, Baroda MF, BNP Paribas MF, Essel MF, Edelweiss MF, Invesco MF, LIC MF, Mirae Asset MF, Motilal Oswal, Nippon India MF, PGIM MF, Principal MF, Quant MF, Quantum MF, Taurus MF, Sundaram MF and UTI MF have introduced SIP pause facility on their websites.
CAMS has also enabled this facility on a few AMCs websites and will soon introduce it on distributor app edge360.
Experts believe that the nationwide lockdown has affected many sectors including aviation, manufacturing, hotel, construction and so on. Investors working in these sectors have witnessed delay in salary and salary cuts.
Vishal Dhawan of Plan Ahead Wealth Advisors said that many investors have been enquiring about discontinuation of SIPs. “The current situation has reduced investors ability to invest. Many clients working in the aviation sector have requested to stop SIPs due to financial constraints,” he added.
Jaipur distributor Ashish Modani of SLA Financial Solutions told Cafemutual that some of his top clients in manufacturing business have paused SIPs. “Currently, investors who run businesses are facing a big hit due to halt in production. The pause facility introduced by AMCs will be helpful for many individual MFDs in these challenging times,” he adds.
Distributors can stop/pause SIPs on CAMS and KFintech. Here is step-by-step process to stop or pause SIPs:
CAMS
- Go to ‘edge 360’ on the CAMS website
- Click on ‘SIP cancelation’
- Key in details like investor’s name, PAN no, mobile no and email id
- Select scheme in which investor wants to stop/pause SIPs
- A link will be sent to investor on his registered email id. The investor has to confirm SIP pause/stop request by submitting one time password
KFintech
- Go to the ‘options’ and select ‘account details’ from the drop down list
- Click on ‘cancel systematic transaction/pause’
- Choose SIP from dropdown
- Select the fund in which SIP has to stopped or paused
- Key in all the details and click on ‘cancel’
- A confirmation link will be sent to the investor’s registered email id. Investors will be required to click on the link and key in one time password
