Mutual Fund Terms

POSTED BY Sonal R Patel ON January 18, 2013 10:50 am COMMENTS (5)

What are all these terms ‘Purchase’, ‘Redeem’, ‘Switch’, ‘Systematic Investment’, ‘Systematic Withdrawal’, ‘Systematic Transfer’ and ‘SI Order Status/Revocation’ shown in HDFC Mutual Fund mean?

5 replies on this article “Mutual Fund Terms”

  1. Dear Sonal, for in between redemption, please fill in the redemption form & submit it to your AMC & it ‘ll redeem your units & ‘ll provide you the money. For ongoing SIPs, you need to intimate your AMC that you want to continue or not.

    Please do note, the exit load may be applicable on your redemption as per T & C of your fund.

    Thanks

    Ashal

  2. Sonal R Patel says:

    For example, If I have a SIP for 12 months and I want to discontinue in middle & redeem those units, then what should I do?

    Thank You
    Sonal

    1. if the fund is an open ended fund the units purchased so far can be redeemed without stopping the SIP. If there is a lock-in only units free from lock-in can be redeemed

      This can be done online.

      For stopping sips some AMCs allow online stoppage and for some you need to fill a form.
      For example HDFC does not allowed online stoppage of ongoing SIPs

  3. ‘Purchase’, –> buy units in a MF
    ‘Redeem’, –> get money for the unit you hold
    ‘Switch’, –> change units from fund A to B

    ‘Systematic Investment’, –> buying units each month (SIP)

    ‘Systematic Withdrawal’, –> redeeming units at regular intervals from one fund to another or from a fund to investor
    ‘Systematic Transfer’ –> transferring units from a debt mf to a equity mf or vice versa
    and ‘
    SI Order Status/Revocation’ –> status of SIP or stopping SIP

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