Axis Long Term Equity Fund (Growth) SIP Redemption?

POSTED BY khushroo9046 ON February 19, 2015 4:32 pm COMMENTS (7)

Hi,

I started Axis Long Term Equity Fund (Growth) SIP (ELSS) on 15th every month from May 2014 for Rs.1,000/- every month.

I want to know the following:

1. When can i make the first redemption? (With no extra charges/penalties to pay for redemption)

2. How much can i redeem in first redemption?

3. A friend told me your first SIP of May 2014 will be eligible for withdrawal on April 2017. Is it correct? That too i can redeem worth 1,000 only?

4. Also i can every month redeem worth 1,000 starting from April 2017? Correct?

5. What should i do if i want to redeem the whole investment of 3 years (2014-17) together?

6. If the answer to Q6 is 2020 then what happens to the investment due in 2017 does it get reinvested till 2020?

7. What are the options if i want to stay invested in 2017 onwards and also in 2020 onwards?

Please help.

Thanks.

7 replies on this article “Axis Long Term Equity Fund (Growth) SIP Redemption?”

  1. Rajendran says:

    My SIP period 2013-2016 After completing the lock period of 3 years I want redeem the whole NAV due to financial urgency for me what is the procedure

  2. khushroo9046 says:

    @Sumeet Gupta – Agreed and Noted.

  3. khushroo9046 says:

    @Sumeet Gupta – Thanks a lot! for the reply. The answer was informative and precise.

    I feel ELSS funds should educate the investors a lock in of 6 years than 3 years for systematic investments. It all comes down to reading between the fine lines otherwise.

    1. Sumeet Gupta says:

      For me, if the purpose to invest in ELSS is purely for section 80C and not goal-based investment, you would be better served to invest the amount in larger lumpsums rather than SIPs to avoid confusion like you have now. For ex., if you want to invest 40k in this financial year, i’d suggest you to do it as 10k * 4 months and not with a regular SIP. IMHO, SIP is the best tool for investments in Mutual Funds, but when it comes to ELSS, lumpsums seem a better way out

  4. Sumeet Gupta says:

    Answers for #1, #2 and #3 is that your friend is partially correct. You can actually redeem the same number of units you took in May 2014 in May 2017(and not April 2017), and by the same formula each subsequent month. For ex., if the fund NAV was 100 in May 2014, you got 10 units for your INR 1000 investment. Hence, in May 2017, you will be able to redeem 10 units. Now, if the NAV in May 2017 is 150, the amount you can take out is 1500 and not 1000. The question of tax penalty, etc. does not arise because you will not be allowed to redeem before this 3 year lock-in expires anyway.
    #4. Yes, but the amount will depend on units purchased 3 years earlier.
    #5. Answer is #6, so yes, add 3 years to your last investment in ELSS and that becomes your redemption date.
    #6. If you do not do anything between 2017 and 2020, you stay invested and your investment grows according to the fund’s NAV. So if you had 100 units at end of May 2017 with NAV of 100, your total amount was 100 * 100 = 10000. If in May 2020, the NAV becomes 150, your total amount will be 100 * 150 = 15000. The total number of units remain constant over this time.
    #7. Your question is not clear. ELSS has a lock-in of 3 years. You can take out your amount anytime after this period lapses. If you invest between 2017 and 2020, the rule still applies and you need to wait till 2023 to get your last investment made in 2020 out.

    Hope this helps 🙂

    1. Diwakar S says:

      Thanks a lot Man. This helped a lot. So do I need to manually calculate how much money I can redeem after 3 years for my first sip made?. Or system will do it for me. I have sip mode in axis long term equity growth, elss

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Join 1,60,000 email subscribers

FREE Video Lessons directly in your email daily

144 page PDF ebook with best articles from Jagoinvestor

Get future articles directly on your mailbox + updates


6 PART VIDEO COURSE

FREE 

 

 

You are subscribed for FREE Course now, Check your Email

CONGRATULATIONS

Join 1,60,000 email subscribers

FREE Video Lessons directly in your email daily

144 page PDF ebook with best articles from Jagoinvestor

Get future articles directly on your mailbox + updates


6 PART VIDEO COURSE

FREE 

 

 

You are subscribed for FREE Course now, Check your Email

CONGRATULATIONS