What happens when I redeem my SIP?

Redeeming your SIP is simply withdrawing your investment to raise money to meet interim or urgent needs. Here, you only sell a part of your investment and not all of it. This means that your SIP is still active even after you redeem held units. The following month, your SIP will continue to purchase units.

What happens when you redeem a mutual fund?

Mutual fund redemption is a process in which you as an investor sell your shares back to the fund. Redemption process is pretty simple and easy depending upon the type of mutual fund you hold. The amount will be credited back to your account/ ledger after you submit the redemption request to the fund house.

What is the NAV applicable when you redeem mutual funds?

Applicable NAV – As the Net Asset Value (NAV) for each day is announced post the closing of the day’s trade, the time of the day when you request for redemption is crucial. However, the NAV of the day is applicable only for redemption requests that come by 3pm in a day, or else the next day’s NAV is applicable.

How do I redeem mutual fund units?

Redemption of Units – online You simply have to log-on to the ‘Online Transaction’ page of the desired Mutual Fund and log-in using your Folio Number and/or the PAN, select the Scheme and the number of units (or the amount) you wish to redeem and confirm your transaction.

How do I redeem SIP investments?

How to redeem your SIP investment in simple steps

1. Highlights.
2. Redeem funds from your SIP only when it is an emergency.
3. Untimely returns from redemption will incur tax.
4. Redeem your SIP offline by going to the RTA office.
5. Place redemption request for SIP online in just a click.

Can we redeem SIP mutual funds anytime?

An investment in an open end scheme can be redeemed at any time. Unless it is an investment in an Equity Linked Savings Scheme (ELSS), wherein there is a lock-in of 3 years from date of investment, there are no restrictions on investment redemption.

When should I redeem mutual funds?

When to exit and redeem a fund In some cases, it could also be a short-term goal, such as buying a car or an appliance. Once an investor gets close to realising his/her financial goal, then he/she should necessarily consider redeeming their fund units, irrespective of the state of the market.

When should you redeem mutual funds?

The right time to sell or redeem mutual funds depends on investors’ financial goals. One might be invested in a mutual fund for ten to fifteen years to purchase a house or finance their child’s wedding. In some cases, it could also be a short-term goal, such as buying a car or an appliance.

What is the right time to withdraw money from mutual fund?

About 9-12 months before your due date when you need the money, you can start moving out a fixed amount from your fund to a stable debt fund. This transfer or partial withdrawal needs to be done in monthly installments and not in one shot.

Should you be cautious when redeeming mutual fund units?

The only thing that you must be cautious about is whether you are redeeming your fund units for the right reason or not. Also, it is important for you to be mindful of the tax aspects and the exit loads involved in mutual fund redemption and then take a decision accordingly.

How much amount will I get when I redeem my mutual fund?

The amount which you will be getting will be determined by the number of units we are wishing to redeem and the prevailing NAV of the mutual fund unit. In this type of redemption, we can specify the amount which we want to redeem back.

What is the procedure for mutual fund redemption?

The procedure will involve the filling of the mutual fund redemption form specifying the plan and scheme name, folio number along with the number of units or the amount to be withdrawn. Subsequently the agent submits the form at the office.

Can I redeem my mutual fund units after the lock-in period?

Though an investor has an option to redeem his/her mutual fund units at his/her own will after the lock-in period (if any) is completed, it is essential to think over this decision wisely before placing the redemption request. This will keep an investor away from making premature withdrawals that affect the final payout costs.