Categories: Business

Money can also be withdrawn from mutual funds in installments, know its method

How to withdraw funds if needed:
  • If you If you have not invested in ELSS and no lock-in period is fixed, then you can easily redeem your points.
  • First decide how much money you need. Do not withdraw all the money together. Redeem some units only.
  • You can redeem some units in cash by going to the Direct Redemption section from the website of your invested mutual fund.
  • You can also check the investments of all mutual funds by filling the details of your PAN card and can redeem the money at any time by going to the website of CAMS or KARVY.
  • keep in mind that CAMS can redeem the funds of the same funds which are registered with CAMS
  • You on your phone too You can easily withdraw the total amount or units by downloading the CAMS app. For this, you have to provide details of your PAN card and link the bank account.
  • An exit load is charged as soon as you go to the option of redemption and the number of units you have filled According to the NAV and market, the money gets credited to your account within three days.
  • If you have invested in equity funds and buy units If you are redeeming it within 365 days, then you will have to pay an exit load of one percent. There is no exit load on liquid funds, ultra short term funds etc.
  • Instead of withdrawing the amount together, you can withdraw it in a systematic way or in installments.
  • ¬∑Systematic withdrawal plans (SWP), you can withdraw money from mutual funds in installments
  • With the option of SWP, you can withdraw money from your deposit investment in monthly, quarterly, half-yearly or yearly installments.
  • If you want, you can also withdraw the returns from an installment or a mutual fund.
  • The SWP option can be started or stopped at any time.
  • People who They need regular cash flow You can activate SWP and collect money on monthly, quarterly, half-yearly or yearly basis.
  • SWP can be closed at any time and it also gives you the benefit of averaging.
  • Money can be withdrawn from mutual funds both online and offline.

Keep some things in mind while withdrawing money:

  • Always check if you withdraw money before your time, then there will be no penalty.
  • Keep in mind that by withdrawing money SIP is not closed, it will continue to operate. So keep sufficient amount in your account to fill your SIP installment every month.
  • You can also redeem from your demat account or withdraw money by filling the form with the help of your mutual fund agent.
  • If your If AMC is not giving you the right returns, then you can withdraw some money depending on the market conditions.
  • When the market is seen to be very fast, at the same time redeem some units when needed and take advantage.
  • If your invested fund is not giving the right performance for the last few days, you can still redeem all the units at once.
  • If suddenly you are in need of money and you do not feel right to take a loan, then according to your need, you can withdraw some amount from mutual funds.
  • Always get the correct information of your fund from an investment advisor. Before deciding to redeem the units, understand the pros and cons properly.
  • If the market fluctuates a lot, avoid redeeming funds from the fund at such times.

This post was published on May 26, 2020 8:20 pm

Content Team

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