SIP Default: What Happens & How to Manage Your Investment

• SIPs are flexible plans, not contracts; existing investments remain even if payments stop.
• Missing a single SIP payment due to insufficient balance has minimal impact, but repeated defaults can hinder long-term wealth creation.
• Instead of stopping SIPs during financial difficulty, consider reducing the investment amount and increasing it later.
• Stopping SIPs during market downturns is detrimental, as lower prices allow for more unit allocation, benefiting long-term returns.
• Start SIPs with a small amount and gradually increase it over time to build a substantial fund, especially if concerned about payment defaults.

Why It Matters: It informs investors about managing SIP payment defaults and flexible options.