Basic question about SIP

POSTED BY sanju ON October 30, 2011 9:21 pm COMMENTS (4)

I am a newbie.I have read quite some articles on SIP. I wanted to know how does a person get his money when investing in SIP. For e.x. when a person invests in FD for a year, he knows that he will get his money in a year, when he invests in PPF, after 15 years, he will get the money. Likewise, if I invest money monthly in SIP , then when will I get the money back? Is it paid lumpsum?

4 replies on this article “Basic question about SIP”

  1. VIGNESH BASKARAN says:

    HI
    1. Irrespective of the profit/loss u need to pay that exit load.

    2. there are different ways of investing in mutual funds. I assume u know these things. if u dont know i ll share the link just look into that . As of now(popular one and cost effective) doing all the transactions thru web portal s like Fundsindia and fundsupermarket.

    using ur login u can do all the things(Redemption,addtional invesment and many other things)

    Happy investing!!!!

    Link:http://www.pankajbatra.com/india/how-to-transact-mutual-funds-online-directly/

    regards
    Vignesh

    1. sanju says:

      Is there a particular reason as why investing through fundsindia/fundsupermarket better than something like icicdirect(I do know that icici chages annual service charge of 450)?

      Aren’t they(fundsindia, etc) new comers? what if they close down and also take the money? Or close down and then you wont’ be able to get transactions or comparisions of all the profit/loss/unit sold/etc details?

      Is tax applicable on this. I heard that irrespective of if I choose tax saver fund, next year on wards when DTC comes, it will be taxed.

  2. sanju says:

    Hi vignesh,

    Thanks. Irrespective of the profit or loss, should I pay that much of the total money invested (if less than a year)?

    What is the kind of notification that I have to give in-order to withdraw money immediately into the account? should I send a email or call up?

  3. VIGNESH BASKARAN says:

    Hi sanju

    While investing thru sip u will get units based on your investing amount on that particular fund based on that date NAV. . U can take out ur money at any time provided u need to pay an exit load of 1 percent if u take that before 1 year(This is based on the fund).
    As of now if u take ur money out of the mutual fund after 1 year no tax will be levied.

    Happy investing!!!!

    Regards
    Vignesh

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