Are you tired of your hard-earned money being automatically deducted every month without your consent? Well, fear not! In this blog post, we will show you exactly how to stop auto SIP in the Groww App and regain control over your investments.
Whether you’re a newbie investor or a seasoned pro, our step-by-step guide will provide you with all the tools and knowledge needed to put an end to those unwanted automated deductions. Get ready to take charge of your financial future – let’s dive in.
About Groww App
Groww functions as an internet-based discount broker, presenting investment opportunities encompassing mutual funds, stocks, IPOs, and digital gold. The platform facilitates cost-free account initiation and does not impose any maintenance fees. To access the diverse array of services extended by the company, it is requisite to initiate a trading and Demat account through Groww.
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What is Auto SIP?
The SIP Autopay feature enables users to establish a mandate that automates the process of deducting the SIP (Systematic Investment Plan) amount directly from their bank account before the scheduled SIP execution date. This proactive approach ensures that you never miss any of your SIP instalments due to delayed fund transfers to your trading account.
How To Stop Auto SIP in Groww App?
Here’s a set of instructions for cancelling an SIP:
- To Begin with, you will need to open your Groww app and then log in to it.
- Now From the bottom section tap on “Mutual Funds”.
- After that tap on SIPs.
- Now Scroll down and locate the specific SIP that you wish to cancel.
- Once you’ve chosen the desired SIP, click on the “CANCEL SIP” option situated in the upper right corner.
- A pop-up window will appear; confirm your intent to cancel the SIP by clicking on “CANCEL SIP” once again.
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Please Keep the Following Notes in Mind
- If you have an upcoming SIP instalment scheduled within the next 3 days, the cancellation process cannot be completed at this time. You should proceed with the cancellation after making the pending instalment payment.
- Any funds that have already been invested in the chosen scheme will remain invested. Cancelling the SIP will exclusively halt future instalments. To redeem the invested amount, you can utilise the options available in your Mutual Funds dashboard.
How To Enable Auto SIP in Groww App
To streamline the automation of your Mutual Fund SIPs, you must complete the e-mandate approval process through the following steps:
- Sign in to your Groww account and navigate to the Mutual Fund section.
- Initiate your SIP order by following the prescribed procedure. You can find detailed instructions on this process by clicking here.
- While on the ‘Order status’ screen, locate and click on the ‘Set up AutoSIP’ option.
- You will be directed to the email authentication page facilitated by BSE Star MF.
- Upon clicking the ‘Continue’ button, a security code will be sent to you.
- After providing the security code, you will be presented with the ‘Set up AutoSIP’ Mandate page. Here, you need to select a verification mode: NetBanking or Debit Card. Additionally, you are required to agree to the terms and conditions before clicking the ‘Submit’ button.
- Depending on the mode you selected you will be redirected to your respective banking portal to authorise the mandate.
- Subsequently, you will encounter the Mandate Approval Automation page, which will display the mandate details.
- Finally, you will receive a confirmation message confirming your successful AutoSIP request.
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Important Notes
- The e-Mandate link must be approved within 5 days; otherwise, it will expire.
- Depending on the bank with which you intend to register your e-Mandate, the processing of your request can take approximately T+7 days.
- Once you complete the authentication process, your bank will notify BSE, and this information will be reflected on Groww.
- Registering an e-Mandate with Groww incurs no charges. However, it’s important to note that, due to a recent circular from NPCI, your bank might levy a one-time fee for mandate registration.
- These charges vary from bank to bank, and you should verify them directly with your bank.
Benefits of Auto SIP
Initiating and utilising SIPs shouldn’t pose challenges for any investor. The process involves enrolling in one of the accessible mutual fund schemes, which then automatically establishes the SIP framework.
Enrolling in mutual fund schemes is a swift online procedure, taking only a few minutes. Typically, mutual fund applications take approximately two to three weeks to be processed. Once processed, investors gain online access to their mutual funds accounts on a daily or weekly basis, catering to their preferences.
SIP is particularly advantageous for investors who prefer not to commit lump sum payments. While the customary initial payment for mutual fund schemes is typically around 5000 INR, opting for a systematic investment plan reduces this to 500 INR per month or per week. Consequently, SIP accommodates investors of varying budgets, making it an appealing option even for those without a steady income stream.
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Pros and Cons of Auto SIP
Pros of Auto SIP
Certainly, let’s delve into the pros of SIP step by step
1. Low Investment Amount
SIP allows for a humble start, beginning with just Rs. 1100 per month. This makes it budget-friendly and easily accessible. You can also choose a higher investment amount. For instance, if you start with Rs. 5000 per month, it’s more manageable than making a lump sum payment of Rs. 60,000.
2. Flexible Payment Frequency
Investors have the freedom to select their preferred payment frequency – whether weekly, monthly, quarterly, half-yearly, yearly, or another mode that suits them.
3. High Liquidity
SIPs offer high liquidity. You can withdraw funds as needed without any additional penalty, except for potential exit loads if you withdraw before a specified period (e.g., one year for equity funds, three years for debt funds).
4. Power of Compounding
SIP capitalises on the power of compounding, multiplying your investment over time. The longer you remain invested, the greater your returns.
5. Inflation-Beating Returns
SIPs tend to yield higher returns compared to investments like Fixed Deposits (FDs), post office schemes, or certain insurance policies. This holds true over a long-term horizon of more than 5 years.
6. Rupee Cost Averaging
SIPs offer the advantage of rupee cost averaging. Regular fixed investments result in purchasing mutual fund units across various market cycles, levelling out purchase prices and reducing the need to time the market.
7. Professional Management
SIP funds are managed by professionals who handle significant portfolios. This professional management comes at a lower fee for individual investors, making it accessible to both common and affluent individuals.
8. Diversification
Mutual fund schemes invest in a diversified portfolio of more than 60 to 70 stocks from different sectors. This built-in diversification mitigates the market risk associated with individual stocks.
9. Simplicity and Convenience
SIPs are simple, convenient, and require minimal time commitment. You can set up auto-debit instructions or online debit forms for your bank and AMC, and investments are automatically deducted each month.
10. Achieving Financial Goals
SIPs help you achieve various financial goals, whether short-term or long-term, by providing a systematic investment approach.
11. Small Investments, Wealth Creation
SIPs offer a straightforward path to wealth accumulation even with small investments. Through disciplined, regular investing and the power of compounding, you can potentially amass substantial wealth over time.
Cons of Auto SIP
Every situation presents two sides, and the optimistic view can sometimes darken for a few. Let’s explore the other facet of the situation:
1. Absence of Assured Returns
Mutual fund investments inherently lack fixed returns. As funds are directed towards stocks or debt securities, returns are not guaranteed. This might result in lower returns in the short term.
2. Costs of Investment Management
Although modest, there exists a requirement to cover the costs of professional management and operational expenses, often represented by the fund’s expense ratio.
3. Lack of Investment Control
Investors do not have the autonomy to invest in their preferred individual stocks or debt securities.
4. Delayed SIP Suspension
Instantaneous cessation of SIPs is not feasible. A certain duration is needed to initiate or terminate SIPs. Note: The typical timeline for halting SIPs is about a month.
5. Unsuitable for Unpredictable Income Streams
SIP investments may not be suitable for individuals with unpredictable income sources, as the regularity of contributions might be challenging to uphold.
6. Limited SIP Date Choices
Not all Asset Management Companies (AMCs) offer an array of investment dates. Investors must preselect from available options, such as the 1st, 5th, 7th, 10th, 15th, 25th, or 28th of each month. While the date might not be a significant concern for many, those whose cash flows do not align with these dates could encounter difficulties.
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Alternatives to Stopping Auto SIP
If the performance of an SIP is not meeting the investor’s expectations, it indicates that the Mutual Fund chosen for the SIP might not be performing well. In such cases, stopping the SIP is a viable option.
However, at Groww, the process of stopping an SIP is simplified. It’s more straightforward. You can stop a SIP by accessing ‘My SIP’ and selecting ‘Cancel’. Subsequently, if you wish to withdraw your funds, navigate to ‘My investments’ and click on ‘Redeem’.
Moreover, an alternative to stopping the SIP is to consider a Systematic Transfer Plan (STP). This entails transferring the already invested amount from one fund (via SIP) to another fund using STP. A fixed amount is systematically moved from the initial fund to the new fund on a weekly or monthly basis.
These aspects should be taken into account when deciding to stop an SIP. Simplified processes like these at Groww eliminate cumbersome steps for investors.
FAQs: How To Stop Auto SIP in Groww App
When SPI continues for the long term, the anticipated return from an equity mutual fund via SIP can typically range between 8% to 15% or even higher.
Yes, you can withdraw your SIP Investments from the Groww app.
Groww encourages the use of autopay for convenience and consistency in SIP payments, it may not be mandatory for all SIP investments. However, it’s recommended to check with Groww directly or refer to their latest terms and conditions to confirm whether autopay has become mandatory for SIP investments on their platform since then. Keep in mind that policies and features of financial platforms can change over time.
Yes, SIP (Systematic Investment Plan) payments can often be made manually without using AutoPay. While AutoPay offers the convenience of automatic deductions from your bank account, many investment platforms, including Groww, allow you to make manual SIP payments as well.
To make a manual SIP payment on Groww or similar platforms, you would typically follow these steps:
1. Log in to your investment account.
2. Navigate to the SIP section or the specific mutual fund you want to invest in.
3. Choose the manual payment option.
4. Enter the desired investment amount and confirm the transaction.
However, procedures may vary based on the platform you are using, so it’s recommended to refer to the specific instructions provided by the platform or contact their customer support for guidance on making manual SIP payments.
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Conclusion How To Stop Auto SIP in Groww App
In conclusion, stopping Auto SIP in the Groww app is a straightforward process that provides you with control over your investment strategy. By following a few simple steps, you can pause or terminate your automated SIP payments as per your financial needs and goals.
This flexibility empowers you to make informed decisions about your investments and adapt to changing circumstances. Remember, Groww’s user-friendly interface ensures that managing your investments, including stopping Auto SIPs, is an accessible and hassle-free experience, giving you the freedom to align your investment approach with your individual preferences and objectives.
If you have any questions or queries regarding the How To Stop Auto SIP in Groww App then you can comment below. We will try to solve your queries as soon as possible. Thanks for reading this article.
