A Systematic Investment Plan (SIP), commonly referred to as SIP, is a payment feature provided by mutual fund companies that allow investors to contribute a certain amount to the mutual fund scheme of their choice on a monthly basis at predetermined intervals. Investors must authorize Electronic Clearance Service (ECS) and National Automated Clearing House (NACH) with the bank in order to have the chosen SIP amount automatically debited from their bank accounts. There can be a time when you miss your SIP for a month and are uncertain about the implications. As a consequence of this, if a SIP is missed, the Asset Management Company (AMC) does not impose a penalty; instead, it prompts the bank to complete the payment. If, however, you do not have enough money in your account, your bank may impose a penalty for failing to maintain sufficient money in your account, taking into account dishonored auto-debit payments/cheque. If you are extremely inconsistent with your SIP payments, your SIP will be automatically cancelled if you miss 3 straight installments.