If started offline, you can’t change an ongoing SIP’s date

You would have to issue a ‘Stop SIP’ request on the ongoing SIP and start a new SIP on the same scheme with a new date


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Can I change the date of my ongoing systematic investment plan (SIP)?

—Arijit Saxena

Monthly SIPs are scheduled to fire on a particular date of the month— typically, 1st, 5th, or 10th. But if the SIP has been started using an offline form (either directly with the fund house or through a distributor), there is no modification process for changing the date.

You would have to issue a ‘Stop SIP’ request on the ongoing SIP and start a new SIP on the same scheme with a new date. Please note that the stop request might not take effect right away. Ensure the original SIP has been stopped before starting the new SIP to avoid double deductions from your bank account. This process would not cost you anything.

If your SIP is running through an online distributor platform, such a modification could be done by logging into your online account and changing the date using platform specific process.

I want to start investing for my 10-year-old son’s higher education. Should I opt for an SIP in a mutual fund (MF) or a fixed deposit (FD)?

—Kanika Saha

Since your son is 10 years old, you have 6-7 years before you would need this money. This is still a comfortable time frame to invest in a diversified MF portfolio using SIP. It’s likely that FDs will give you a lower rate of return comparatively and the gains would be subject to full taxation as well (as per current tax rules). A good idea would be to start your SIP in a relatively moderate risk portfolio of 60% equity funds and 40% debt funds. For example, if you are investing Rs.10,000 a month, you could invest Rs.2,000 each in ICICI Prudential Focused Bluechip fund, Franklin Templeton-Franklin India Prima Plus fund, and BNP Paribas Midcap fund. The remaining Rs.4,000 could be invested in a short-term debt fund such as Franklin Templeton-Franklin India Short-term Income plan. If you invest in this manner for six years, you can expect to turn your Rs.7.2 lakh of investment to Rs.11 lakh (assuming a 2% per annum return) in time for your son’s high school graduation.

I am a retired person and have other sources of income. Which MFs can I invest in for 5 years? I’ve heard it has risks.

—Gokul Raja

It is not necessary that a retired person should shy away from taking risk in the market. Depending on one’s sources of income and the time frames they are looking at, retired persons can indeed take calculated risks in the market. This will help them beat inflation, which is a concern that every investor should have regardless of age.

In your case, if you have secured a source of income to take care of your monthly expenses and have enough savings for emergency requirements such as healthcare, you can invest the remaining money in an MF portfolio. Equity-oriented balanced funds such as HDFC Balanced and Tata Balanced funds are good choices.

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