Pausing SIP set to become simpler; more fund houses to offer option

Many fund houses don't yet offer the pause facility but are scrambling to put one in place for investors

With the coronavirus-related lockdown hitting cash flows, many companies have announced salary cuts and even layoffs. This has had a knock-on effect on systematic investment plans (SIPs) of mutual funds, with many investors looking to pause or stop them. 

If you wish to pause your SIP, check with your fund house whether it offers this facility. Only a limited number of fund houses do so at present. Many that don’t have the pause facility at all are scrambling to offer it at the earliest, as it works in their favour if their customers pause, and not stop.

The number of