Mutual Funds SIP Redemption?

Question

I have started and SIP for 12 months(equity diversified), i have 3 questions.

After 12 months of SIP can i redeem it any time?

Can i extend the SIP period? If i extend when can i redeem the amount i paid for 12 months? is it only possible to redeem the entire amount after completion of the Extended SIP period?

If i purchase some more units of the Same fund, will it be treated as a new Folio?

Answer 1

I have started and SIP for 12 months(equity diversified), i have 3 questions.



After 12 months of SIP can i redeem it any time?



ANSWER : Investment in equity is for long term. Your horizon should be at least 3-5 years. If you redeem now , there will be an exit load of 1% on the NAV for the units allotted in the last 11 months. Ideally you should continue your SIP for 3 years and redeem after 5 years or more.



Can i extend the SIP period?

Yes you can renew your SIP for another year



If i extend when can i redeem the amount i paid for 12 months?



Redeem the units allotted during 12 months after 3 years.





is it only possible to redeem the entire amount after completion of the Extended SIP period?



Redeem all units after 1 year from stopping your SIP



If i purchase some more units of the Same fund, will it be treated as a new Folio?



Additional purchase can be done in the same folio

Answer 2

Hi Anoop,



After 12 months of SIP can i redeem it any time?

Yes you can redeem any time (but not in case if you invested in ELSS or Pension Plan)



Can i extend the SIP period?

Yes, but for that need to fill sip auto debit renewal form to continue sip.



If i extend when can i redeem the amount i paid for 12 months? is it only possible to redeem the entire amount after completion of the Extended SIP period?



Extension of sip is nothing to do with redemption, you can redeem very next day after you purchase,

only problem you will pay exit load if applicable for that scheme you invested.



If i purchase some more units of the Same fund, will it be treated as a new Folio?

No, if you buy the units by transaction slip of same folio or when buying and using common application form but mention the folio, purchase will be added in existing folio



when treated in new folio

when you purchase using application form and don't mention your old folio number.

Answer 3

If it is a purely equity fund, then you can redeem at any point. Only ELSS funds have a lockin of 3 years.



You can extend the SIP period and redemption can be done at any time, irrespective of your extension. You can also add more units to the same Folio.

Answer 4

yes. on completion of SIP period of 12 months you can redeem the investment. With advance notice of two months, some mutual funds permit extension of SIP. If you purchase more units in the same scheme, your folio will be same.

Answer 5

yes you can redeem at any time but for less than one year they charge you 1%.

In your case only that amount which is older than one year you can withdraw without extra 1% penalty.

if you are investing 1000rs/month than after one year you can withdraw 1000 not 12000.



For extra purchase it comes in same folio if you purchase in the same one

i hope you got your answer