Verified: 2026-05-28100% complete

SIP cancellation reasons

Verified: 2026-05-28% complete

Customer's problem

The customer wants to cancel a SIP and is asking whether their money will come back.

Quick fix

Cancellation only stops future debits. Units already bought stay invested in the fund. The mandate remains Active, so a new SIP can be started later without setting one up again.

🗣️ Say this to the customer

Cancelling a SIP stops future debits, but the units you have already bought stay invested in the fund. You will be asked to pick a reason — there is no wrong answer. The mandate stays active, so you can start a new SIP later without setting one up again.

👂 What the customer says

"I want to cancel my SIP." / "Why is the app asking me to pick a reason?" / "Will my money come back if I cancel?"

⚙️ Background (agent reference — do not read to customer)

When a customer cancels a SIP from the Holding detail → More Actions → Cancel flow, the app shows a reason picker driven by the MFPlanCancellationCodes enum. The reason does not change what happens to the customer's money — past installments stay invested as units in the fund — but it helps the product team understand churn and helps the agent guide the customer.

🗣️ What to do & say

Cancelling a SIP stops future debits. It does not redeem the units you have already bought.
Your past SIP installments stay invested in the fund — you can leave them there or redeem them separately from the same screen.
You will be asked to pick a reason. There is no wrong answer — pick the one closest to your situation, or Custom Reason if none fit.
Once cancelled, your mandate stays active (so you can start a new SIP later without setting up a new mandate).

🔴 Escalation

Escalate to L2 if: cancellation fails repeatedly, the customer says they cancelled but the next installment still debited, or the customer wants the mandate cancelled too.

Per-reason agent guidance

For each cancellation code, what the customer is likely telling you and what to suggest before letting them cancel.

Code	Customer's real concern	What the agent says
AMOUNT_NOT_AVAILABLE	Can't afford the installment any more	"You can also lower the SIP amount instead of cancelling — tap Edit SIP, change the amount, save. The mandate stays the same."
INVESTMENT_RETURNS_NOT_AS_EXPECTED	Fund under-performed for a few months	"SIPs work over years, not months — short-term dips are normal. If you still want to cancel, that is fine, but please understand exiting early can lock in a loss."
EXIT_LOAD_NOT_AS_EXPECTED	Surprise on exit-load when they tried to redeem	"Exit load applies only to redemption, not to cancelling the SIP. Cancelling the SIP is free."
SWITCH_TO_OTHER_SCHEME	Moving money to a different fund	"You can use Switch instead of cancel + buy — Switch keeps your investment in one transaction and is usually tax-efficient. From the holding detail, tap More Actions → Switch."
FUND_MANAGER_CHANGED	Lost confidence after a manager change	"That is a valid reason. If you would like a similar fund with a stable manager, you can look at the Top Rated Funds category on Home." (Do not name a specific fund — that is advice.)
INVESTMENT_GOAL_COMPLETE	Achieved what they were saving for	"Congratulations — that is exactly what SIPs are for. After cancel, you may want to redeem to your bank from the same screen."
MANDATE_NOT_READY	Mandate stuck `REJECTED` / `SUBMITTED` and SIP keeps failing	"Let's fix the mandate first instead of cancelling the SIP. See if a new UPI Autopay mandate works — it usually activates same day." See Mandate Activation Failed.
INVEST_LATER	Wants to pause, not cancel	"You can pause the SIP instead of cancelling — pause keeps the schedule and resumes on the next date you set. Tap More Actions → Pause."
CUSTOMER_SUPPORT_NOT_SATISFACTORY	Complaint about us	Apologise, take notes, log a CRM ticket and offer to call the customer back after L2 review.
AMC_SUPPORT_NOT_SATISFACTORY	Complaint about the AMC	Take notes, suggest moving the SIP to a different AMC via Switch, do not promise anything on the AMC's behalf.
CUSTOM_REASON	Anything not above (free-text from the customer)	Read the free-text aloud back to confirm, then process the cancel.

What happens after the customer taps Cancel

Customer taps Cancel  ─►  Reason picker  ─►  Confirm
                                                │
                                                ▼
                                    SIP plan moves to:
                                    TransactionPlanState.Cancelled
                                                │
                                                ▼
                            Mandate stays APPROVED (still usable)
                                                │
                                                ▼
                            Past units remain in the customer's folio

What changes	What stays
Future installment dates are removed	Past units stay in the fund
The SIP card in Portfolio shows status Cancelled	Mandate remains active and reusable
No more SIP-debit notifications	Holding still shows in Portfolio

If the customer cancels but a debit still happens

Mandates run on a T-1 cycle for SIP debits. If the cancellation lands after the bank's cut-off (typically 11:00 PM the day before), the next debit still goes through. The amount is invested as the last SIP installment and shows in the holding. This is not an error.

⚠️ One last debit is normal after a late cancel

If the cancellation happened on, say, the 7th and the SIP date is the 8th, the 8th-of-month installment will still debit. From the 9th onwards no more debits will run. Tell the customer this clearly so they are not surprised by the SMS.

ℹ️ Cancel vs Pause vs Mandate-cancel

Cancel SIP = stops future installments, mandate stays. Pause SIP = stops future installments temporarily, resumes on a chosen date, mandate stays. Cancel Mandate = stops every SIP linked to that mandate. Use only if the customer wants no further auto-debits from that bank at all.