What Happens If You Miss Your SIP?
Written by Mariyam Sara
3 min read | Updated on November 26, 2025, 11:42 IST
There are two methods of investing in mutual funds: lump-sum payment and SIP (Systematic Investment Plan) payments. If you choose the SIP payment model, you have to pay a fixed amount of money at regular intervals, usually every month.
SIP helps you average the cost of investing and take advantage of market volatility. When you miss your SIP payments, not only will you be charged bounce fees by banks in case of failed auto-debits, but also negatively impact your portfolio.
Consequences of Missing Your SIP Payments
Every action has consequences, similarly, missing your SIP payments has negative consequences that affect your mutual fund investments. Let’s look at some of the consequences you may face if you miss your SIP payments.
Disruption in Investment Growth
When you invest in mutual funds, you earn compounded returns on your investments. Missing your SIP payments disrupts the growth of your investments and hinders your investment strategy.
Delay in Achieving Financial Goals
People invest in mutual funds with a financial goal in mind, be it children's education or early retirement. When you miss your SIP payments, you miss the opportunity to grow your investments and this leads to a delay in achieving your financial goals.
Missing Out on Market Volatility
When you invest in mutual funds, you get Mutual Fund units. The value of these units, i.e., NAV, changes constantly as per market volatility. SIP payments help you take advantage of this volatility by buying more units when the market is down. When the markets recover, the value of your units increases, thereby increasing your investments.
Fund Cancellation
If you miss multiple SIP payments, the mutual fund house may cancel your SIPs. Your current investments will continue to grow, but you won’t be able to make future contributions to them.
How to Restart Your SIP Payments?
Restarting your SIP payments is quite easy and simple, follow the instructions below to continue reaping the benefits of your mutual fund investments.
Contact Mutual Fund Provider
The first step is to contact your mutual fund provider to reactivate your SIP if you miss a payment. But if you miss multiple SIP payments, you will have to restart your SIP, which may need additional steps.
Check Grace Period for Missed Payments
SIP payments have grace periods. If you pay your SIP within this period, you won’t be charged any penalty and your SIP will resume without any issues.
Maintain Sufficient Funds in Your Bank Account
Insufficient funds are one of the main reasons why investors miss their SIP payments. To avoid this, maintain sufficient balance in your bank account and set up an automatic mandate that allows your bank to automatically debit a fixed amount from your account for SIP.
Check KYC Details
Your SIP payment might be missed due to KYC issues or outdated information. If that is the case, then you can update your KYC details online through your mutual fund provider’s web portal.
How to Avoid Missing Your SIP Payments?
Missed SIP payments can negatively impact your mutual fund investments, following are some tips to help you avoid missing your SIP payments.
- Monitor Your Bank Balance
Keep track of your bank balance and ensure sufficient funds so that your SIP payments aren’t missed.
- Voluntarily Pause or Stop SIP Payment If Required
If you are facing liquidity issues, you can voluntarily stop or pause your SIP via your mutual fund provider’s web portal or mobile application.
What to Do if You Miss a SIP Payment?
Consistent SIPs are crucial for the growth of your investments so you can achieve your financial goals. Here’s what you can do if you miss your SIP payments to make sure you don’t miss another.
Identify The Reason Behind Missed Payments
Find the reason behind your missed SIP payments so that you can fix the problem at its root. Is it due to sufficient funds? Or outdated KYC information?
Once you’ve identified the issue, fix it immediately so that you don't end up missing another SIP payment.
Contact Your Mutual Fund Provider
The grace period for SIP varies among different mutual funds, so contact your mutual fund provider and find out if there is a grace period for SIP payments. If your mutual fund provider offers grace periods for SIP, then pay your outstanding amount to avoid disturbing your investment growth.
Verify Your Bank Details
If you missed your SIP payments due to incorrect bank details, then rectify the issue by correcting the bank details by contacting your mutual fund provider.
Reassess Investment Strategy
If you’re regularly missing your SIP payments, maybe it's time to reassess your investment strategy and pick an SIP amount that you can afford to pay.
SIP payments are a great way to invest in mutual funds and build financial discipline. Try not to miss your SIP payments so that your investment can grow and offer compounded returns on your investments.
About Author
Mariyam Sara
Sub-Editor
holds an MBA in Finance and is a true Finance Fanatic. She writes extensively on all things finance whether it’s stock trading, personal finance, or insurance, chances are she’s covered it. When she’s not writing, she’s busy pursuing NISM certifications, experimenting with new baking recipes.
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Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.