Disadvantages of SIP

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Mutual funds and SIP always go hand in hand in the market. Mutual fund SIP Advisor Mumbai, are very common and important in the Mumbai market in today’s date and to know about the details of insider SIP investments and more. Mutual fund SIP Advisor Mumbai can be also hunted online and can help you with the details of all about mutual funds trading. After having our conversation regarding the similar topic and after a consultation with several Mutual Fund SIP Advisor Mumbai, below are the various disadvantages of mutual funds SIP in India. They are as follows:


  • Insufficient Funds: Investing in the SIP would definitely mean that one will give you instructions in advance or post dated the cheques in the case possibly. But, at times if we do not maintain a certain balance in the cheque then it would be returned or the ECS instruction would also be under the category of dishonored. Therefore, the best way to be absolutely sure is to have a maintained balance in the account at all times. Also, if there is a certain mechanism which the fund house can be alerted then there is a SIP due and you can also ask for the same too, and the last option is to make sure that one can be intimated with the fund house in advance with the urgency not to deposit the cheque.


  • Does not suit people with an unpredictable cash flow: The SIP route can only opt if the investor is completely sure that they will be able to pay the fixed amount coming every month without any fail. But if the investor is an individual with an unpredictable cash flow, then paying the SIP can be considered to be highly complicated and they may be not able to pay the SIP on a monthly basis.



  • Stopping the payment in between is a nightmare: The SIP amounts are automatically deducted from the bank account which is assigned. Thus, if in the case of an investor, there will be an emergency and they may want to skip the payment in a month’s SIP, it would not allow such kinds of provisions. Also, if the bank account has the amount, the amount will be likely to get deducted and the only way to stop it is to cancel the SIP, But one must remember that you can cancel the SIP and have to go through all the formalities and then restart again apart from only the cancellations which would be then informed in the institution in 2 week in advance.


  • Dates and time periods are fixed and cannot be changed–Once the date and period is fixed on a SIP payment, and then the date and period cannot be changed. The bank account should also have the amount on the date assigned in the beginning without fail.



  • Ups or downs investment is uniform–No matter of ups and downs in the market the investor is bound to pay the fixed monthly amounts. They cannot change the amount or periods.
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