What happens to my existing SIP or investments if an AMC suspends a mutual fund scheme?
If an Asset Management Company (AMC) decides to suspend a mutual fund scheme, it can leave investors confused about the status of their active investments or SIPs.
What does scheme suspension mean?
When an AMC suspends a mutual fund scheme, it means new investments—including Systematic Investment Plans (SIPs)—are temporarily or permanently paused for that scheme. This decision is typically made due to regulatory directives, liquidity concerns, merger events, or winding-up of the fund.
Suspension affects different aspects of your investment differently.
What If...
| Scenario | Outcome |
|---|
| You have an active SIP in the suspended scheme | SIPs are automatically paused or cancelled. You will no longer be able to make fresh investments in that scheme. |
| You already hold units of the suspended scheme | Your existing units remain in your Demat account. You continue to own them and they will reflect in your portfolio. |
| You want to redeem your holdings | Redemption depends on whether the AMC allows it. Some suspended schemes allow redemption; others may restrict it until a future date. |
| The suspension is temporary | If the AMC reopens the scheme later, SIPs do not auto-resume. You must reinvest or restart your SIP manually. |
Always review AMC announcements for any changes in fund status. FYERS notifies users via in-app alerts or emails whenever SIPs are paused due to scheme suspension.
Last updated: 16 Jun 2025
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